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08-08-2022 Council Packet
Agenda Council Meeting Monday, August 8, 2022 6:00 P.M. Orono Council Chambers, 2780 Kelley Parkway, Orono, MN 55356 952-249-4600 / www.ci.orono.mn.us Sign up for email notifications at www.ci.orono.mn.us The public is invited to address the council regarding any item on the regular agenda. If your topic is not on the agenda, you may speak during the Public Comments section. Roll Call Pledge of Allegiance Approval of Agenda Consent Agenda 1. City Council Meeting Minutes of July 25, 2022 2. Claims/Bills 3. Approval of Rental Licenses 4. Appointment of Community Development Director – Laura Oakden 5. Appointment of City Planner – Natalie Nye 6. Amend Fee Schedule – Convenience Fee 7. Back Up Generator Replacement for Lift Station #14 (Orchard Beach) 8. Watermain Replacement Project (22-023) – Award 9. LA22-000034 – Concept Landscaping o/b/o Deborah Jordan, 1350 Rest Point Circle, Variance – Resolution No. 7279 Community Development Report 10. LA22-000038 – Dennis Walsh, 1354 Rest Point Circle, Variance – Resolution No. 7280 11. LA22-000035 – Alexander Design Group o/b/o Atrion & Lisa Faiola, 2659 Casco Point Road, Variances – Resolution No. 7281 Presentation 12. 2021 Audit Finance Report Public Works Report Fire Department Report 13. Fire Department Equipment Procurement – CMD 1 and CMD 2 (22-047) City Attorney Report Mayor/Council Report Public Comments – (Limit 3 Minutes per Person) This is an opportunity for the public to address the City Council. The council will not engage in discussion or take action on items presented at this time. However, the council may refer issues to staff Agenda Council Meeting Monday, August 8, 2022 6:00 P.M. Orono Council Chambers, 2780 Kelley Parkway, Orono, MN 55356 952-249-4600 / www.ci.orono.mn.us Sign up for email notifications at www.ci.orono.mn.us for follow up or consideration at a future meeting. Speakers should state their name and home address at the podium before speaking. Adjournment Upcoming Events 2022 08-09-2022 Primary Election, Tuesday, 7:00 a.m. to 8:00 p.m. 08-15-2022 Planning Commission Meeting, Monday, 6:00 p.m. (Richard F. Crosby II) 08-22-2022 City Council Work Session, Monday, 5:00 p.m. 08-22-2022 City Council Meeting, Monday, 6:00 p.m. 09-05-2022 Official Holiday, City Offices Closed 09-07-2022 Park Commission Work Session, Thursday, 6:00 p.m. 09-12-2022 City Council Work Session, Monday, 5:00 p.m. 09-12-2020 City Council Meeting, Monday 6:00 p.m. 09-19-2022 Planning Commission Meeting, Monday, 6:00 p.m. (Aaron Printup) 09-26-2022 City Council Work Session, Monday, 5:00 p.m. 09-26-2022 City Council Meeting, Monday, 6:00 p.m. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 1 of 8 ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh, City Council Members Matt Johnson, Aaron Printup, and Richard Crosby III; Council Member Victoria Seals was absent. Representing Staff were City Attorney Soren Mattick, Finance Director Ron Olson, City Planner Laura Oakden, and City Planner Melanie Curtis. Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance. APPROVAL OF AGENDA Crosby asked to add Item 6, LA 22-000026 – Al Azad, 165 Bederwood Drive, Variances – Resolution 7278 to Consent Agenda and to Move Item 7 and Item 8 Before Public Comments. A member of the public asked to remove Item 4 from the Consent Agenda. Crosby moved, Johnson seconded, to approve the Agenda as amended. VOTE: Ayes 4, Nays 0. CONSENT AGENDA 1. CITY COUNCIL MEETING MINUTES OF JULY 11, 2022 2. CLAIMS/BILLS 3. 2022 PAY EQUITY REPORT 4. LA21-000029 – ROBERT D. ERICKSON, 365 WESTLAKE STREET, CONFIRMING CONDITIONS OF APPROVAL – RESOLUTION 7277 This item was removed from the Consent Agenda. 5. SPRUCE PLACE RIGHT-OF-WAY ADJUSTMENT 6. LA 22-00026 – AL AZAD, 165 BEDERWOOD DRIVE, VARIANCES – RESOLUTION 7278 Crosby moved, Johnson seconded, to approve the Consent Agenda as submitted. VOTE: Ayes 5, Nays 0. 4. LA21-000029 – ROBERT D. ERICKSON, 365 WESTLAKE STREET, CONFIRMING CONDITIONS OF APPROVAL – RESOLUTION 7277 City Planner Oakden gave a summary presentation on the item noting this is a clarification that all items have been submitted and all conditions have been met. Barbara Schmidt, 50 Landmark Drive, asked if the final plat for the property has been approved. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 2 of 8 Ms. Oakden replied the final plat has been withdrawn. She noted the vacation was a separate action from the platting of the properties; therefore that plat is no longer in the process as it has been withdrawn by the Applicant. She clarified that the plat was a separate application not associated with the vacation. Ms. Schmidt asked if the Watershed District has commented on this. Ms. Oakden can go back to confirm but believes everyone was notified properly through the process when the vacation application was under review. Ms. Schmidt asked what City fund the $100,000 is being deposited into as it said “public improvements” and whether that is street, landscaping, etcetera. Finance Director Olson replied the $100,000 was deposited into the Park Fund for improvements in parks. Ms. Schmidt asked if they know the total area that was to be sold to Mr. Erickson in the vacated lakeshore and cul-de-sac variance he received. Ms. Oakden does not have the exact measurements in front of her noting the resolution was to approve the vacation with those conditions which have been met. She is happy to follow up with the vacation report. Ms. Schmidt is trying to understand why there is a resolution for a resolution and noted that is confusing. Ms. Oakden shared it was requested by the Applicant that the resolution be proposed to the City Council to confirm because there were so many conditions associated with the vacation. Ms. Schmidt asked if that is normal. Attorney Mattick replied it is not uncommon with something that has this many conditions, especially when real estate is involved as the County takes care of the vacation. The City vacates the property, sends it to the County, and the County works with the Applicant. Crosby moved, Printup seconded, to adopt Resolution 7277 confirming all required conditions of Resolution 7211 have been met. VOTE: Ayes 4, Nays 0. FIRE DEPARTMENT REPORT 7. FIRE DEPARTMENT EQUIPMENT PROCUREMENT – CMD 1 AND CMD 2 (22-047) Deputy Chief Ryan Gonsior asked if any Council Members have questions about the item this evening. Mayor Walsh noted this is the purchase of two Chevrolet Tahoes. The motion tonight is to purchase the vehicles, they would be in the City of Orono’s name, the City would be loaning the vehicles to Long Lake Fire, and Long Lake accepts that they have no claim on these vehicles. These would be the conditions. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 3 of 8 Deputy Chief Gonsior noted the previous vehicle was not equitable to repair and the previous year Orono Police Department was kind enough to lend them a retired squad car which is currently being used. In the Capital Plan it was up the previous year to replace that vehicle, however they could not order due to supply chain issues. He was able to find two 2022 Tahoes in Maryland noting it is very difficult to find vehicles and order right now. Crosby moved, Johnson seconded, to approve procurement of Fire Command Vehicles from Criswell Fleet Sales for $137,707.18 with vehicle ownership being solely the City Of Orono with conditions. VOTE: Ayes 4, Nays 0. 8. PUBLIC SAFETY UPDATE FROM THE THC MORATORIUM Police Chief Farniok stated on July 1 a new law went into place to allow edible THC’s as well as drinkable THC solutions. With the law being passed, cities are struggling with how to accept this into their communities. Questions include whether to create licensing similar to alcohol or tobacco, or to do nothing and allow businesses to operate and sell these edibles and product in the community, zoning requirements, etcetera. The League of Minnesota Cities is encouraging cities to put in a moratorium so they can study what to do with this new law. Before the Council tonight is a moratorium listing the reasons so the City has time to study and look at what they want to do moving forward in allowing these businesses to operate in the communities. Mayor Walsh asked if the legislature is looking to put more language on the subject. Chief Farniok noted it is a struggle right now because guidance and enforcement comes back to local control and the Board of Pharmacy. He clarified they do not know how to enforce because they do not know what to enforce. Right now people under age 21 cannot purchase but anyone can possess; therefore a 12 year old could possess THC gummies and it is not against the law or they can have THC-infused seltzers and an open container while driving around because that is not against the law. He noted they are finding there is a lot of information that needs to be tightened up and they are asking legislature to look, tighten up, and clarify as right now the officers are in limbo and do not know what to enforce. Printup moved, Crosby seconded, to approve interim Ordinance 276, 3rd series, prohibiting the sale, testing, manufacturing, distribution of THC products. VOTE: Ayes 4, Nays 0. COMMUNITY DEVELOPMENT REPORT PUBLIC COMMENTS Brad Erickson, 2485 Independence Road, is present tonight as he is running out of patience and noted he is glad Mr. Printup is here. He stated they are going to have to figure something out here and his attorney is back in town. There is more to this than certain people understand and he said if there is anything he can do to help fill some gaps in logic and reason they would be happy to do that. Mr. Erickson stated this will not go away and this will not happen in this zip code ever again and he wants to make sure the message is sent loud and clear by censuring this man and letting anyone else who wants to come into this town, raise a right hand, and swear an oath to protect people know that is what they should do. What was MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 4 of 8 sent to Mr. Erickson was filth, vile, vulgar, dark, depraved, not funny at all and Mr. Erickson said 80 years is too soon for stuff like that. Not only should it have not been sent to anyone, it certainly should not have been sent to Mr. Erickson. He asked Mr. Printup to do the right thing and stated someone needs to make a motion for censure, although it does not have to be tonight as he respects the City’s legal position. Barbara Peterson, 1261 Arbor Street, read a piece of correspondence signed by four former Mayors of Long Lake (Tim Hultmann, Janet Schaefer, Marty Schneider, Donny Chillstrom) and four former Mayors of the City of Orono (Lili McMillan, Gabriel Jabbour, Jim White, and Barbara Peterson) that was dropped off to the City the previous week and the local newspaper. She wants it to be added to the official record and read: Dear Orono Citizens, as former Mayors of Long Lake and Orono, we want to have the best fire services for our Cities. Orono and Long Lake have been in a cooperative fire agreement since 2002. This partnership came about when the Highway 12 bypass location required the removal of Long Lake’s existing fire house. At that time the two cities worked together to find a replacement site and designed a modern building with the two communities sharing fire services. Orono worked jointly with Long Lake to secure sufficient funds from MnDOT and the Willow Station site was chosen as a response location to serve both cities. A new station was built and a Fire Advisory Board represented by both cities meets throughout the year to work on the budget and provide guidance on fire operations. This has served both communities well for 20 years. With the contract coming up for renewal there would have been opportunities for any changes in the contract to be discussed. Instead, last year with no public input and no supporting rationale, the Orono City Council notified Long Lake it will be terminating the fire services agreement in 2025. Orono claims the reason it wants sole ownership and control of Long Lake Fire is because Orono pays over 80% of the annual budget. Orono, under any agreement, would pay more for fire services than Long Lake, it is 15 times larger than Long Lake and has 5 times its population. Instead of opening negotiations with Long Lake about contract changes, Orono has threatened to use taxpayer dollars either to buy out Long Lake’s stake in the Willow building or build a brand new fire station from scratch. Mayor Walsh noted the three minute time limit had elapsed. Tim Hultmann, 280 Lakeview, Long Lake, said now is not the time to create a new fire department. The future of fire-fighting is heading towards consolidating services not dividing resources. Orono’s quest to try and start its own fire department contains many risks including escalating costs to build and equip the new facility. There are unknowns regarding training and recruitment of volunteer fire fighters and potential increased response times due to station location changes. It is an expensive way to tamper with the public safety that is not broken. Most importantly, this began to create an environment of mistrust and ill-will between the two neighboring communities. Mr. Hultmann said this is unfortunate for our two cities are intertwined, share infrastructure, fire services, shoreline, commercial blocks, interconnecting trials, and retail amenities that the citizens like to use. It is important for Orono to maintain open and honest communication with Long Lake to work on these issues. Long Lake has offered to start negotiations on a new contract and they are sincerely hoping the Orono City Council represents those talks in earnest. Mr. Hultmann said they specifically want Orono represented to set up a series of public meetings to negotiate contract renewal. The taxpayers of our cities need full and transparent public MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 5 of 8 meetings with agenda topics and minutes available on the City’s websites so the rest of them can be kept appraised of the negotiation. Both cities have worked side-by-side to solve many issues for the betterment of the communities and it is the belief that this fire contract can be resolved and renewed in a manner that is fair to both sides and continue to successfully meet the public safety needs of the two communities and well into the future. Dan Iverson, 4640 North Arm Drive, is a little concerned about the mad rush to give away public lands and properties in Orono, especially the most recent one where the DNR has come out and said there is no public benefit to the proposed vacation. The present and potential future of the land could far exceed the minimal value that is being proposed at this time. He wonders why, if the City will cede land and potentially valuable property, it has not come up to a public auction or at least a public referendum rather than being decided between just a few individuals. There are a string of properties he is concerned about including Summit Park, Bederwood, and Lowry. Mr. Iverson is concerned that the City Council is possibly overstepping their bounds and not considering the public trust and the future value of these lands. He thinks they should try to retain the land they have in Orono because it is really one of the best suburbs in the State, in Mr. Iverson’s opinion and it is a great place to live. Jay Nygard, 1386 Rest Point Road, continues to be embarrassed by the City Council. He noted this gentleman was speaking and Mayor Walsh could not even be bothered to even look at him, just like at Mr. Nygard right now. He told Mayor Walsh he is the mayor of these people and asked “what the hell are you doing? Hello? Mayor Walsh?” Crosby asked Mr. Nygard to be respectful. Mr. Nygard stated what Mayor Walsh is doing is disrespectful and he is merely asking him to pay attention to what Mr. Nygard is saying like everybody else here. Mr. Nygard noted Mayor Walsh is gaveling former mayors and noted one man had to speak so fast to make sure he got his comments in and one could not understand it very well. He again asked, “What the hell is going on with you guys?” Mr. Nygard went in front of the Mound City Council and found out what it was like to be treated with respect, to have people talk and listen to you. But not here, they are all about disrespect and that is all he sees. Mayor Walsh noted this is a listening session and he is listening. Mr. Nygard asked how would he know as Mayor Walsh is not paying any attention. He asked is this really what Mayor Walsh is going to do? That is what children do and the City Council all goes along with it. Crosby stated they spoke last week about coming here, showing decorum, being respectful to the Chambers. Mr. Nygard said excuse me, this is my three minutes. This is not your time. Crosby asked Mr. Nygard to be respectful to the Chamber and to the Council. Mr. Nygard asked to have his full three minutes and asked Mayor Walsh to please pay attention to him. Members of the public spoke from the back of the Chambers [inaudible] and asked “What is your point?” MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 6 of 8 Mr. Nygard replied his point is the Mayor is a jack-ass. A member of the public spoke from the back and said “Somebody is acting like a child.” Another member of the public said “You guys be quiet.” Mayor Walsh did not hear Gabe yelling when he was over there heckling people and asked if he will pick and choose what he wants to be arguing about? Maybe he should fucking learn something too. Mr. Nygard said “Ooh. This is my three minutes Mr. Walsh.” Crosby said Mr. Nygard is down to 37 seconds. Mr. Nygard appreciates that they stopped the clock because of what had been going on. He will resume as long as Mayor Walsh pays attention. Mayor Walsh replied he is listening and for Mr. Nygard to say whatever he is going to say. Mr. Nygard stated he is not paying any attention. He came up here last time and had a silent protest. Mayor Walsh noted that worked well. Mr. Nygard said Mayor Walsh held up a newspaper and ignored him the whole time except when looking at the clock. Everybody who was here disrespected him in his protest. Gabriel Jabbour, 985 Tonkawa Road, said this is absolutely inexcusable, it is disgusting, the citizens deserve better, and he understands there is a lot of garbage coming to them. He repeated he understands there is a lot of garbage coming to them. But getting people in the audience to take over the meeting, there is no place that. If the Council would take care of those people and give Mr. Jabbour the right to speak, they will have no problem. He said they might learn from immigrants that political discord is the most protected of the First Amendment and Mr. Jabbour is embarrassed this is happening, he is upset this is happening, and it does not please him. He said they will find out why it is happening and the question was if the Council will figure out a way to deal with it and put it behind them? Mr. Jabbour addressed Mr. Crosby and said Target does not sell respect, one earns respect rather than buying it at the market. If he wants respect, he gives respect. Mr. Jabbour was not planning to speak and said Mr. Walsh hammered Mayor Peterson two seconds before her time. Mayor Walsh replied nope. Mr. Jabbour stated they are a small little town and they are all neighbors and he asked the Council to try to figure out how they can show and lead the City in a better direction. He asked them to get together, hire someone, figure out what happens, get a mediator with Mr. Erickson, and figure it out. But trying to ask friends to come to the meeting to defend them is like Mr. Jabbour throwing fire in the living room, it is inappropriate. He said to Mr. Walsh (pointing behind him) those people are under that position, an oath, they spill the beans. The Council cannot bring people here to control other people. He said thank you. Mayor Walsh said to Mr. Jabbour it is interesting that a few years ago if he remembers right… MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 7 of 8 Mr. Nygard shouted from the back that it is public comments not mayor’s comments. Mayor Walsh noted Mr. Nygard is out of order talking in the back. Mr. Jabbour returned to the podium. Mayor Walsh said again it was a few years ago when a letter went out in the mail that made up untrue things about him. He said in talking about “buying respect” all of a sudden there was an apology letter from Mr. Jabbour that he had to send out because Mayor Walsh sued him for defamation. Mr. Jabbour replied, “Mr. Mayor you are incorrect.” Mayor Walsh said out of all the statements Mr. Jabbour makes, if there was such a thing, Mr. Jabbour would have no credibility at all. Mr. Nygard shouted from the back. Mayor Walsh said Mr. Nygard’s friend just came up and spoke about shouting from the back but Mr. Nygard just continues to do it. Mr. Nygard again shouted from the back. Crosby mentioned all of the citizens have a right to be in the gallery and not be attacked. That is necessary. There can be discussion and differences, but everyone here has rights to be here. FINANCE DIRECTOR REPORT Finance Director Olson noted the Finance Department is wading into budget time and the first meeting will be on Friday to work through the 2023 budget. CITY ATTORNEY REPORT Attorney Mattick had nothing to report. MAYOR/COUNCIL REPORT Johnson noted during public comment time the Council received a letter from a past mayor and he thinks it was a little delayed as Johnson and Seals are currently negotiating with Long Lake representatives in the fire department. He feels they are continuing to make progress on the common goal to keep the fire department intact and it will take everyone’s cooperation and they are working toward that. Printup spoke about an article in the local paper the past weekend about municipalities, small towns, and rising costs. He asked Finance Director Olson about feeling any pinches in the City buying fuel in bulk a year ahead of time. Mr. Olson replied they are not feeling it yet and they are locked in at about $1.98/gallon. He noted they lock in for about 70% of what they need and the 30% they buy at the spot market price is higher than it would have been and the future fuel budget will be worked through with the Committee. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 25, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 8 of 8 Crosby received sad news the previous week noting a former Orono police officer, Bruce Anderson, passed away. Mr. Anderson was a police officer in Orono from 1978-2008, he built relationships with businesses and residents, worked hard to build relationships with Mound, Maple Plain, and Long Lake Fire, Hennepin County Water Patrol, and the lake area police departments. Mr. Anderson was very social and enjoyed talking to people and engaging in friendly conversation. He was a go-to officer who worked hard to know the community and get to the people and Mr. Anderson will be greatly missed. Crosby noted Mr. Anderson took young people under his wing, made them feel welcome, he had a great smile and was a great person. Crosby’s thoughts and prayer go out to Mr. Anderson’s family and asked if they can hang a blue line flag at half-mast the following day. Walsh noted Spirit of the Lakes Festival was the previous weekend and spoke about the water level with the dam being closed. ADJOURNMENT Crosby moved, Printup seconded, to adjourn the meeting at 6:47 p.m. VOTE: Ayes 4, Nays 0. ATTEST: _____________________________________ _______________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor AGENDA ITEM Prepared By: Ck Reviewed By: RJO Approved By: 1. Purpose. The purpose of this action item is to approve payment of claims made on the City for services and/or products provided to the City. 2. Background. The attached claims for payment have been received by the City. Staff has reviewed the claims and is recommending approval of the listing for payment. The claims will be paid by checks 119187 to119240 and ACH transaction 20130276 to 20130278 totaling $615,515.17. 3. Noteworthy Payments. Vendor Amount Description of Payment #119204 Boyer Trucks Inc $6460.56 Repair Electronics Vactor on Unit # 713. #119234 Sig Sauer $23,625.00 New Rifle Parts for the Police Dept. #119240 Asphalt Surface Tech $520,519.43 Pymt #1 on 2022 Street Project. 4. Staff Recommendation. Staff recommends approval of a motion authorizing payment to the claims list as presented. COUNCIL ACTION REQUESTED Motion to approve the claims list as presented. Exhibits A. Check Register Item No.: 2 Date: August 8, 2022 Item Description: Claims/Bills Presenter: Ron Olson Finance Director Agenda Section: Consent Agenda City of Orono Check Register - COUNCIL REPORT Page: 1 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount CAPITOL BEVERAGE SALES L.P 07/29/2022 119187 2711977 101-45210-091 ALCOHOL RESALE Golf Course 512.61 Total 119187:512.61 DAHLHEIMER BEVERAGE MON 07/29/2022 119188 1618290 101-45210-091 ALCOHOL Golf Course 126.00 Total 119188:126.00 GREAT LAKES COCA-COLA 07/29/2022 119189 3609217880 101-45210-092 POP Golf Course 617.26 Total 119189:617.26 International Union Local #49 07/29/2022 119190 LOCALUNIO 101-21707 LOCAL 49 DUES - 07/2022 350.00 Total 119190:350.00 LAW ENFORCEMENT LABOR S 07/29/2022 119191 LAWENFOR 101-21707 LELS DUES - LOCAL 40 07/2022 1,464.71 LAW ENFORCEMENT LABOR S 07/29/2022 119191 LAWENFOR 101-21707 LELS DUES - LOCAL 168 07/2022 260.00 Total 119191:1,724.71 NCPERS GROUP LIFE INS.07/29/2022 119192 NCPERS072 101-21710 PERA LIFE 08/2022 336.00 Total 119192:336.00 OPEIU - LOCAL 12 07/29/2022 119193 OPEIN07282 101-21707 UNION DUES - LOCAL 12 07/2022 741.50 Total 119193:741.50 SUN LIFE FINANCIAL 07/29/2022 119194 SUNLIFE072 101-21714 STD- AUGUST/2022 971.30 SUN LIFE FINANCIAL 07/29/2022 119194 SUPPLIFES 101-21710 LIFE INS- AUGUST/2022 1,467.29 SUN LIFE FINANCIAL 07/29/2022 119194 SUPPLIFES 101-15998 LIFE INS-COBRA- AUGUST/2022 32.94 Total 119194:2,471.53 THE HARTFORD 07/29/2022 119195 HARTFORD0 101-21713 LTD AUGUST/2022 1,596.54 Total 119195:1,596.54 UNITED STATES POSTAL SERVI 07/29/2022 119196 2022-07 UB 602-49450-322 07/22 UTILITY BILLS Sewer 340.48 City of Orono Check Register - COUNCIL REPORT Page: 2 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount UNITED STATES POSTAL SERVI 07/29/2022 119196 2022-07 UB 651-49910-322 07/22 UTILITY BILLS Storm Water 340.48 UNITED STATES POSTAL SERVI 07/29/2022 119196 2022-07 UB 601-49400-322 07/22 UTILITY BILLS Water 340.48 Total 119196:1,021.44 ACME TOOLS 08/08/2022 119197 10181119 101-45210-240 SMALL TOOLS Golf Course 499.00 Total 119197:499.00 ALEXANDER, TIMOTHY & HUE 08/08/2022 119198 2022.07 ALE 999-10015 UB REFUND - 2735 COUNTRYSIDE DR W 307.41 Total 119198:307.41 ALLSTREAM 08/08/2022 119199 18622908 101-42110-321 PHONE SERVICE 07/23/22-08/22/22 Police Department 304.06 ALLSTREAM 08/08/2022 119199 18622908 101-41900-321 PHONE SERVICE 07/23/22-08/22/22 Central Services 425.69 ALLSTREAM 08/08/2022 119199 18622908 601-49400-321 PHONE SERVICE 07/23/22-08/22/22 Water 70.95 ALLSTREAM 08/08/2022 119199 18622908 602-49450-321 PHONE SERVICE 07/23/22-08/22/22 Sewer 162.17 ALLSTREAM 08/08/2022 119199 18622908 101-45210-321 PHONE SERVICE 07/23/22-08/22/22 Golf Course 50.67 Total 119199:1,013.54 AMAZON CAPITAL SERVICE 08/08/2022 119200 1WHM-MMT 101-43000-240 SHOP TOOLS AND SUPPLIES Public Works Department 217.08 Total 119200:217.08 AMPLATZ, MARIA 08/08/2022 119201 2022.08 AMP 999-10015 UB REFUND - 3838 CHERRY AVE 181.44 Total 119201:181.44 BARNUM GATE SERVICES INC 08/08/2022 119202 33673 101-42110-404 BUILDING REPAIRS - HYDRAULIC GATE Police Department 220.00 Total 119202:220.00 BIFFS INC 08/08/2022 119203 07/13/2022 101-45200-415 BIFF RENTAL Parks 182.00 BIFFS INC 08/08/2022 119203 W872014 101-45200-415 BIFF RENTAL Parks 192.50 BIFFS INC 08/08/2022 119203 W872015 101-45200-415 BIFF RENTAL Parks 166.00 BIFFS INC 08/08/2022 119203 W872017 101-45200-415 BIFF RENTAL Parks 91.00 BIFFS INC 08/08/2022 119203 W872018 101-45200-415 BIFF RENTAL Parks 91.00 BIFFS INC 08/08/2022 119203 W872019 101-45200-415 BIFF RENTAL Parks 166.00 BIFFS INC 08/08/2022 119203 W872020 101-45200-415 BIFF RENTAL Parks 91.00 City of Orono Check Register - COUNCIL REPORT Page: 3 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount BIFFS INC 08/08/2022 119203 W872021 101-45200-415 BIFF RENTAL Parks 91.00 BIFFS INC 08/08/2022 119203 W872022 101-45200-415 BRUSH SITE Parks 91.00 Total 119203:1,161.50 BOYER TRUCKS INC 08/08/2022 119204 003P24203 701-49800-222 TRANSMISSION FILTER 424,425,6,7 294.96 BOYER TRUCKS INC 08/08/2022 119204 003S6214 701-49800-402 REPAIR ELECTRONICS VACTOR 713 6,165.60 Total 119204:6,460.56 CAPITOL BEVERAGE SALES L.P 08/08/2022 119205 2706927 101-45210-091 ALCOHOL RESALE Golf Course 432.47 Total 119205:432.47 Century Link 08/08/2022 119206 2022.07 GC 101-45210-321 GC PHONE/INTERNET 07/19/22-08/18/22 Golf Course 234.42 Total 119206:234.42 CHUNKS LAKESHORE AUTO 08/08/2022 119207 0018723 101-42110-402 SQUAD #265 RIGHT REAR TIRE REPAIR Police Department 19.08 CHUNKS LAKESHORE AUTO 08/08/2022 119207 0018734 101-42110-402 SQUAD #256 RT TIRE REPAIR Police Department 19.08 Total 119207:38.16 City of Orono Utilities 08/08/2022 119208 2022.07 CH&101-42110-382 JULY 2022 UB CH & PD Police Department 1,079.20 City of Orono Utilities 08/08/2022 119208 2022.07 CH&101-41900-382 JULY 2022 UB CH & PD Central Services 1,079.20 City of Orono Utilities 08/08/2022 119208 2022.07 PO 101-41900-382 JULY 2022 UB - PO Central Services 84.72 City of Orono Utilities 08/08/2022 119208 2022.07 WT 601-49400-382 JULY 2022 WTP Water 145.70 Total 119208:2,388.82 CITY OF WAYZATA 08/08/2022 119209 JULY 2022 W 601-49400-387 JULY 2022 WATER Water 4,781.35 CITY OF WAYZATA 08/08/2022 119209 JULY 2022 W 602-49450-387 JULY 2022 SEWER Sewer 10,074.00 Total 119209:14,855.35 CIVICPLUS 08/08/2022 119210 234876 614-49840-329 CIVICPLUS WEBSITE ANNUAL FEE Cable Franchise 758.00 Total 119210:758.00 CORE & MAIN 08/08/2022 119211 R211624 601-49400-227 HYDRANT FLAGS Water 355.95 City of Orono Check Register - COUNCIL REPORT Page: 4 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount CORE & MAIN 08/08/2022 119211 R211624 651-49910-227 STORM SEWER Storm Water 23.22 Total 119211:379.17 EARL F ANDERSON & ASSOC 08/08/2022 119212 010281-IN 651-49910-227 TRAFFIC CONES Storm Water 528.70 EARL F ANDERSON & ASSOC 08/08/2022 119212 0130209-IN 651-49910-227 TRAFFIC CONES Storm Water 528.70 Total 119212:1,057.40 ECM PUBLISHERS INC 08/08/2022 119213 903349 101-41410-340 ELECTION NOTICE Elections 23.84 ECM PUBLISHERS INC 08/08/2022 119213 903350 101-41410-340 ELECTION NOTICE Elections 17.88 Total 119213:41.72 ESS BROTHERS & SONS 08/08/2022 119214 CC4907 101-41900-223 TRUNCATED DOMES FOR SIDEWALKS AT PW Central Services 196.00 ESS BROTHERS & SONS 08/08/2022 119214 CC4907 651-49910-227 STORM SEWER CASTING AND GRATE Storm Water 377.00 Total 119214:573.00 FASTENAL 08/08/2022 119215 MNPLY1363 701-49800-221 NUTS AND BOLTS / SHOP SUPPLIES 141.58 Total 119215:141.58 G&H Distributing & Supply Inc 08/08/2022 119216 00161151 701-49800-221 HYDRANT HOSE - UNIT 426 - TASK 50903 146.80 G&H Distributing & Supply Inc 08/08/2022 119216 00162331 701-49800-221 HYDRAULIC HOSE #423 117.81 Total 119216:264.61 GENUINE PARTS COMPANY/NA 08/08/2022 119217 3270-543987 701-49800-222 AIR FILTER 167.48 GENUINE PARTS COMPANY/NA 08/08/2022 119217 3270-544111 701-49800-222 AIR AND OIL FILTER FOR PD VEHICLES 217.66 GENUINE PARTS COMPANY/NA 08/08/2022 119217 3270-544188 701-49800-221 BATTERY #429 225.25 GENUINE PARTS COMPANY/NA 08/08/2022 119217 3270-544414 701-49800-221 BATTERY #429 215.64 GENUINE PARTS COMPANY/NA 08/08/2022 119217 3270-544499 701-49800-221 BRAKES FOR 111 148.99 Total 119217:975.02 GERTENS 08/08/2022 119218 622267/6 237-45690-489 APPLE TREE Golf Course Improvement 455.00 Total 119218:455.00 City of Orono Check Register - COUNCIL REPORT Page: 5 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount GOPHER ACE 08/08/2022 119219 11800 701-49800-240 GREASE FITTINGS PIPING 22.95 GOPHER ACE 08/08/2022 119219 11820 101-45210-404 IRRIGATION REPAIR Golf Course 36.98 GOPHER ACE 08/08/2022 119219 11851/1 101-45210-223 GARDEN HOSE Golf Course 31.17 GOPHER ACE 08/08/2022 119219 11873 101-41900-223 GARDEN HOSE APDATOR Central Services 8.99 GOPHER ACE 08/08/2022 119219 11903 101-41900-223 PIPE FITTING REDUCER Central Services 4.99 GOPHER ACE 08/08/2022 119219 11931/1 101-45200-404 IRRIGATION REPAIR Parks 20.55 GOPHER ACE 08/08/2022 119219 11943 101-41900-223 DRANO TASK 66286 Central Services 11.99 GOPHER ACE 08/08/2022 119219 11954 701-49800-212 PREMIX FUEL FOR SMALL ENGINES 207.98 GOPHER ACE 08/08/2022 119219 11955 101-41900-223 BRACKET FOR GATE - TASK 66293 Central Services 4.99 Total 119219:350.59 GRAFIX SHOPPE 08/08/2022 119220 145791 101-42110-402 SQUAD REPAIRS #259 FOR SQUAD CRASH Police Department 635.00 GRAFIX SHOPPE 08/08/2022 119220 145792 101-42110-402 SQUAD REPAIRS #267 Police Department 151.00 Total 119220:786.00 HAWKINS INC 08/08/2022 119221 6245922 601-49400-216 WATER PLANT CHEMICALS Water 6,750.98 Total 119221:6,750.98 Hennepin County Property Tax 08/08/2022 119222 0722-38 235-45690-489 TIF ADMINISTRATION 609.00 Total 119222:609.00 INTOXIMETERS INC 08/08/2022 119223 712018 101-42110-221 PBT REPAIR Police Department 105.00 Total 119223:105.00 LARSON, JOHN & RAIYA 08/08/2022 119224 2022.07 LAR 999-10015 UB REFUND - 4655 TONKA VIEW LN 65.57 Total 119224:65.57 LJK COMPANIES 08/08/2022 119225 2022.08 LJK 999-10015 UB REFUND - 1375 PARK DR 126.48 Total 119225:126.48 MANSFIELD OIL COMPANY 08/08/2022 119226 23458376 101-42110-212 UNLEADED FUEL Police Department 1,630.42 MANSFIELD OIL COMPANY 08/08/2022 119226 23458403 101-42110-212 UNLEADED FUEL Police Department 3,987.81 MANSFIELD OIL COMPANY 08/08/2022 119226 23458482 701-49800-212 DIESEL FUEL 1,717.37 City of Orono Check Register - COUNCIL REPORT Page: 6 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 119226:7,335.60 MINNEAPOLIS OXYGEN COMPA 08/08/2022 119227 00096399 101-43000-415 ACETYLENE, OXYGEN Public Works Department 65.94 MINNEAPOLIS OXYGEN COMPA 08/08/2022 119227 00096401 101-42110-221 MEDICAL OXYGEN Police Department 18.88 Total 119227:84.82 Modern Power Solutions LLC 08/08/2022 119228 9607019 602-49450-403 LS # 14 GENERATOR TROUBLE SHOOT Sewer 334.50 Total 119228:334.50 MOUND TRUE VALUE 08/08/2022 119229 182244 101-42110-221 MISC MAINTENANCE SUPPLIES Police Department 36.58 MOUND TRUE VALUE 08/08/2022 119229 182307 101-42110-240 MISC SUPPLIES Police Department 59.19 Total 119229:95.77 MTI DISTRIBUTING INC 08/08/2022 119230 1352106-03 101-45210-404 IRRIGATION REPAIR Golf Course 408.20 MTI DISTRIBUTING INC 08/08/2022 119230 1352106-04 101-45210-404 IRRIGATION REPAIR Golf Course 204.10 MTI DISTRIBUTING INC 08/08/2022 119230 1354472-00 101-45210-404 IRRIGATION REPAIR Golf Course 88.40 MTI DISTRIBUTING INC 08/08/2022 119230 1356001-00 101-45210-404 IRRIGATION REPAIR Golf Course 622.70 MTI DISTRIBUTING INC 08/08/2022 119230 1356240-00 101-45210-404 IRRIGATION REPAIR Golf Course 1,690.00 MTI DISTRIBUTING INC 08/08/2022 119230 1356396-00 101-45210-404 IRRIGATION REPAIR Golf Course 1,730.30 Total 119230:4,743.70 NAVARRE HARDWARE 08/08/2022 119231 338307 601-49400-240 NUT DRIVER Water 8.49 NAVARRE HARDWARE 08/08/2022 119231 338463 101-45200-223 SAWZALL BLADES Parks 38.99 Total 119231:47.48 QUALITY FLOW SYSTEMS INC 08/08/2022 119232 43312 602-49450-406 LS#3 MISSION UNIT Sewer 657.50 Total 119232:657.50 RDO EQUIPMENT 08/08/2022 119233 P5497714 701-49800-221 GAS CYLINDER FOR BACKHOE 91.44 Total 119233:91.44 SIG SAUER 08/08/2022 119234 4646879 101-42110-580 FIREARMS, NEW RIFLE PARTS Police Department 23,625.00 City of Orono Check Register - COUNCIL REPORT Page: 7 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 119234:23,625.00 SiteOne Landscape Supply LLC 08/08/2022 119235 121392516-0 101-45210-404 GOLF IRRIGATION REPAIR Golf Course 136.72 SiteOne Landscape Supply LLC 08/08/2022 119235 121453789-0 101-45210-240 GREENS TOOL Golf Course 260.00 SiteOne Landscape Supply LLC 08/08/2022 119235 121453789-0 101-45210-223 CUP CUTTER Golf Course 760.00 SiteOne Landscape Supply LLC 08/08/2022 119235 121650704-0 101-45210-404 GOLF IRRIGATION REPAIR Golf Course 3.32 SiteOne Landscape Supply LLC 08/08/2022 119235 121674221-0 101-45210-404 GOLF IRRIGATION REPAIR Golf Course 343.43 Total 119235:1,503.47 SNAP-ON TOOLS INC 08/08/2022 119236 0718221410 701-49800-240 CREDIT FOR 19MM SOCKET 13.50- SNAP-ON TOOLS INC 08/08/2022 119236 0718221410 701-49800-240 PLIERS AND CUT OFF TOOL 113.75 SNAP-ON TOOLS INC 08/08/2022 119236 0801221416 701-49800-240 SOCKETS (HAND TOOLS)67.15 Total 119236:167.40 STREICHERS POLICE EQUIP 08/08/2022 119237 1580070 101-42110-226 NEW HIRE UNIFORM - KNAPEK Police Department 1,446.00 Total 119237:1,446.00 UNIFIRST CORPORATION 08/08/2022 119238 090 0708854 701-49800-221 SHOP TOWELS - PW 5.70 UNIFIRST CORPORATION 08/08/2022 119238 090 0708854 101-43000-226 UNIFORMS - PW Public Works Department 109.31 UNIFIRST CORPORATION 08/08/2022 119238 090 0708854 101-43000-404 RUGS - PW Public Works Department 19.50 UNIFIRST CORPORATION 08/08/2022 119238 090 0710202 701-49800-221 SHOP TOWELS - PW 5.70 UNIFIRST CORPORATION 08/08/2022 119238 090 0710202 101-43000-404 RUGS - PW Public Works Department 19.50 UNIFIRST CORPORATION 08/08/2022 119238 090 0710202 101-43000-226 UNIFORMS - PW Public Works Department 109.31 UNIFIRST CORPORATION 08/08/2022 119238 0900710230 101-45210-223 LAUNDRY SERVICE Golf Course 26.07 Total 119238:295.09 YAMAHA MOTOR CORP.08/08/2022 119239 780347 101-45210-415 18 GOLF CARTS-LEASE Golf Course 1,647.00 YAMAHA MOTOR CORP.08/08/2022 119239 780379 101-45210-415 UTILITY CART RENTAL Golf Course 295.00 Total 119239:1,942.00 ASPHALT SURFACE TECHNOL 08/08/2022 119240 PYMT#1 202 435-48973-590 2022 STREETS PROJECT 2020 Street Improvements 548,230.98 ASPHALT SURFACE TECHNOL 08/08/2022 119240 PYMT#1 202 435-20600 2022 STREETS PROJECT 27,411.55- City of Orono Check Register - COUNCIL REPORT Page: 8 Check Issue Dates: 7/26/2022 - 8/8/2022 Aug 04, 2022 12:12PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 119240:520,819.43 CARDMEMBER SERVICE 07/27/2022 201302 05/24/2022-0 601-49400-216 WATERPLANT CHEMICALS Water 469.50 CARDMEMBER SERVICE 07/27/2022 201302 05/24/22-06/101-41900-223 PW FLAGS Central Services 80.95 Total 20130276:550.45 CARDMEMBER SERVICE 08/08/2022 201302 06/22/2022-0 101-43000-224 HIP WADERS Public Works Department 202.13 CARDMEMBER SERVICE 08/08/2022 201302 06/22/2022-0 101-42110-319 MN POST BOARD KNAPEK LICENSE AND FEES Police Department 91.94 CARDMEMBER SERVICE 08/08/2022 201302 06/22/2022-0 101-42110-402 CAR WASH #261 Police Department 15.00 CARDMEMBER SERVICE 08/08/2022 201302 06/22/2022-0 101-42110-437 2022 FBI NAA CONFERENCE Police Department 250.00 Total 20130277:559.07 THE HOME DEPOT 08/08/2022 201302 072122 101-45200-223 HAND TOOLS,POWER CORD REEL AND ZIP TIE Parks 240.11 THE HOME DEPOT 08/08/2022 201302 072122 101-43000-222 COPPER PIPE FOR SHOP Public Works Department 29.88 Total 20130278:269.99 Grand Totals: 615,515.17 AGENDA ITEM Prepared By: A. Carlson Reviewed By: A. Carlson Approved By: 1.Purpose. The purpose of this action item is to approve the Rental Licenses for the license period of January 1, 2022 to December 31, 2023. 2.Rental License Applicant Smith Squared – Moe Sarah Smith License # RL22-000008 Ben Kieffer License # RL22-000009 Richard Nuebauer License # RL22-000010 3.Staff Recommendation. Staff recommends approval of the rental licenses listed above for the license period of January 1, 2022 to December 31, 2023. The rental license applicants have submitted all of the requested documents and has met all requirements. COUNCIL ACTION REQUESTED Motion to approve the rental licenses listed above for the license period of January 1, 2022 to December 31, 2023. Item No.: 3 Date: August 8, 2022 Item Description: Approval of Rental Licenses Presenter: Anna Carlson, City Clerk Agenda Section: Consent Agenda AGENDA ITEM Prepared By: Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this action item is to appoint Ms. Laura Oakden to the Community Development Director (CDD) position. 2. Background. The resignation of Mr. Jeremy Barnhart created a vacancy in the CDD position. Laura volunteered and was appointed by Council as the interim CDD. City Staff undertook a recruitment process to find a full time CDD. 3. Recruitment. The selection process for the position involved advertising the position, application screening, and interviews. First round interviews were completed by a panel consisting of the City Administrator, Finance Director, Building Official and City Planner. The second round interview panel consisted of the City Administrator, City Clerk, Council Member Seals and Council Member Johnson. 4. Recommended Candidate. Ms. Laura Oakden is the recommended candidate for the position. Laura has worked for the City of Orono since 2017 as a City Planner. Laura has a BA in Urban Studies and Environmental Studies as well as a Master degree in Urban and Regional Planning. 5. Recommended Compensation. I recommend appointment of Laura Oakden to the Community Development Director Position with an effective start date of August 9, 2022. a.Salary. Grade 16 / Step 1 ($97,812.24 / yr) of the City Employee Pay Scale. b.Benefits. All current benefits will remain based on her initial date of hire and as outlined in the personnel handbook. Her vacation rate will be set to 18 days/year. COUNCIL ACTION REQUESTED Motion to appoint Laura Oakden as the Community Development Director a start date of August 9, 2022. Item No.: 4 Date: August 8, 2022 Item Description: Appointment of Community Development Director – Laura Oakden Presenter: Adam T. Edwards City Administrator/ City Engineer Agenda Section: Consent Agenda AGENDA ITEM Prepared By: Reviewed By: AMC Approved By: 1. Purpose. The purpose of this action item is to gain approval to appoint/hire a City Planner. 2. Background. The recent appointment of Laura Oakden as Community Development Director (CDD) created a City Planner vacancy. 3. Recruitment. The selection process for the position involved review of applicants from the CDD position recruitment, application screening, and interviews. First round interviews were completed by a panel consisting of the City Administrator, Finance Director, Building Official and City Planner. The second round interview panel consisted of The City Administrator, City Clerk, Council Member Seals and Council Member Johnson. 4. Recommended Candidate. The panels recommend Natalie Nye for the City Planner position. Natalie comes to us with 9+ years of planning experience in a number of communities. She holds a BA in Urban and Regional Planning. She holds an AICP certification. 5. Recommended Compensation. I recommend appointment of Natalie Nye as City Planner with an effective start date of October 3, 2022. a. Salary. Grade 11 Step 6 ($85,700.24/Yr) of the OPEIU Local 12 Pay Scale. Upon successful completion of the probationary period this will be adjusted to Grade 11, Step7. b. Benefits. As a full-time employee the position is eligible for benefits as outlined in the OPEIU Local 12 Agreement and personnel handbook. Vacation accrual will begin at 15 days / year. COUNCIL ACTION REQUESTED Motion to approve Appoint Natalie Nye as City Planner with a start date of October 3, 2022. Item No.: 5 Date: August 8, 2022 Item Description: Appointment of City Planner- Natalie Nye Presenter: Adam T. Edwards City Administrator/Engineer Agenda Section: Consent Agenda AGENDA ITEM Prepared By: RJO Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this agenda item is to amend the 2022 Fee Schedule to reflect a three percent (3%) convenience fee on payments made using a credit card. 2.Background. In 2020 the City approved a convenience fee of 2.75%, to be charged and collected by the City’s credit card processor, Payment Services Network (PSN). By instituting the convenience fee, the city is saving approximately $50,000 annually. PSN recently increased their convenience fee from 2.75% to 3.00%. As a result of this increase, the City’s fee schedule needs to be adjusted. Customers do have the ability to pay for their services through alternative methods that do not incur a convenience fee. These include payment by check or cash, and the ability to pay by direct debit of their bank account. 3. Cost. There is no cost to this action. 4. Staff Recommendation. Staff recommends amending the fee schedule to reflect a convenience fee of 3.0%. COUNCIL ACTION REQUESTED Motion to approve Ordinance 277 amending the convenience fee on credit card transactions. Exhibits A. Ordinance 277 Item No.: 6 Date: August 8, 2022 Item Description: Amend Fee Schedule – Convenience Fee Presenter: Ron Olson Finance Director Agenda Section: Consent Agenda ORDINANCE NO. 277, THIRD SERIES CITY OF ORONO HENNEPIN COUNTY, MINNESOTA AN ORDINANCE ADOPTING THE 2022 FEE SCHEDULE AND AN ORDINANCE REPEALING ORDINANCE NO. 275, THIRD SERIES THE CITY COUNCIL OF ORONO ORDAINS: SECTION 1. Ordinances Repealed. Ordinance No. 275, Third Series, entitled 2022 Fee Schedule is hereby repealed. SECTION 2. The City Council of Orono per Section 2-171 of the Municipal Code hereby ordains the fees attached as Exhibit A effective during the calendar year 2022: SECTION 3. EFFECTIVE DATE: This ordinance establishing the 2022 Fee Schedule shall be published as a Summary Ordinance and shall be effective on August 8, 2022 and publication. ADOPTED this 8th day of August, 2022 on a vote of ayes and nays by the City Council of Orono, Minnesota. ATTEST: Anna Carlson, City Clerk Dennis Walsh, Mayor Ordinance published in The Laker and The Pioneer newspapers the week of , 2022. 1 A. Buillding, Planning, and Zoning B. License Fees and Miscellaneous Charges C. Utility Rates and Fees D. Administrative Offenses E. Park Fees F. Police Administration G. Documents and Services Zoning Applications Commercial Marina Sanitary Sewer and Municipal Water Connection Traffic/ Vehicle Golf Course Dogs at Large Zoning Documents Zoning Permits Joint Use Dock Municipal Connection Permit Snowmobile Violations Lurton Park Animals at Large General Administrative Documents Building Code Administration Rental License Point of Sale Fees Animals Summit Beach Large Assemble Permit Building Permits Garbage Hauler Sewer Projects Public Nuisances Bederwood & Hackberry Sport Fields Fireworks Contractual Inspections Home Occupation Water Connections Open Burning Firearms Fire Temporary Trailers and Buildings Water Meter and Horn Noise Trapping Park Dedication Kennel Licenses Sewer and Water Unit Adjustment Charges Park Violations Special Events Storm Water Trunk Beer, Wine, and Liquor Utility Service Fees Sign Violations False Alarm Amusement Devices Municipal Water Rates Juvenile Violations Fingerprinting Public Dance Stormwater Utility Rates Seasonal Overweight Vehicles Police Special Services General Administrative Licenses/Fines Recycling Charge Parking Copy Service Miscellaneous Charges Sump Pump Surcharge Miscellaneous Photos PW supplies and service No Parking Signs Statements Fire arm storage Table of Contents 2022 Orono Fee Schedule Application 2022 Fee Escrow Notes Variance $325.00 $700.00 + Consultant fees 1st Extension $50.00 Staff approved 2nd and subsequent $50.00 City Council meeting Conditional Use Permit $325.00 $700.00 + Consultant fees CUP amendment $325.00 $700.00 1st Extension $50.00 Staff approved Interim Use Permit $325.00 $700.00 + Consultant fees Site Plan Review $325.00 $700.00 + Consultant fees Zoning Amendments including map amendments $325.00 $700.00 + Consultant fees Concept Review $325.00 Comprehensive Plan Amendment $325.00 $700.00 + Consultant fees Subdivision Subdivision: Sketch Plan $325.00 Subdivision: Class III Prel Plat $500.00 $5,000.00 + Consultant fees Subdivision: Final Plat $500.00 $2,500.00 + Consultant fees Subdivision: Preliminary plat extension $325.00 Subdivision Exception $50.00 n/a + Consultant fees if Applicable Vacations Vacations: Road $325.00 $700.00 Vacation: Easement not associated with subdivisions $325.00 $700.00 Vacation: Easements associated with a subdivision $0.00 Easement Creation $150.00 $700.00 Appeal of Administrative Decision $150.00 $700.00 Exhibit A Buillding, Planning, and Zoning All fees, unless otherwise noted, are application fees and are non-refundable after staff work has begun on the application. All after the fact applications are double fees. All applicants are responsible for actual costs incurred by the City by its' consultants in the review of the application. ZONING APPLICATIONS: PLANNING, BUILDING, ZONING Application 2022 Fee Escrow Notes Stairway to Lake $50.00 Structures not requiring a building permit $50.00 Plus Engineering Costs Encroachment Permit/ Agreement $150.00 Tree removal in shore setback $0.00 Signs (Alteration of cabinent or raceway)$50.00 Vehicle Storage $50.00 78-1577 (C) Land Alteration $50.00 $1,000.00 May also require a CUP Tent/ Canopy Permits $50.00 *City Administrator may require an erosion control escrow for projects disturbing soils or tree replacement. $1,000.00 Variable depending on project scope, but not to exceed Zoning confirmation letter $50.00 Request for zoning confirmation letter Address Change Request by Owner $50.00 ZONING PERMIT: Application 2022 Fee Escrow Notes Building Permits Based on Value Table Building permit fees (Building, Plumbing, Mechanical, unless otherwise noted) Based on 2012 Building Valuation Plan Review Fee 65% of Building Permit Fee Additional plan review required by changes, additions, or revisions to approved plans minimum one half hour charge (does not apply to commercial plumbing) $75.00 / hour Minimum Fee $26.25 Moved-In Structure (not including foundation, interior remodel, etc.)$275.00 Pre-Move Inspection $165.00 Special investigation fee (work started without obtaining a permit – applies even if no permit is pulled) 100% of Building permit fee Manufactured Home Installation $275.00 plus State Surcharge and requires a regular building permit if also doing basement, foundation, garage or entryway, fees are based on sq. ft. State Table City Administrator may require an erosion control escrow for projects disturbing soils. Not to Exceed $1,000 Refunds: 80% of building permit fees on projects not yet started (within 90 days of permit issuance by municipality). No refund on plan review fees, state surcharge or maintenance permits BUILDING CODE ADMINISTRATION: Application 2022 Fee Escrow Notes Total Valuation $1.00 to $500 $501.00 to $2,000.00 $2,001.00 to $25,000.00 $25,001.00 to $50,000.00 $50,001.00 to $100,000.00 $100,001.00 to $500,000.00 $500,001.00 to $1,000,000.00 $1,000,001.00 and up State Surcharge as required by State $77.40 for the first $2,000.00 plus $15.49 for each additional $1,000.00, or fraction thereof, to and including $25,000.00 $26.25 $26.25 for the first $500.00 plus $3.41 for each additional $100.00, or fraction thereof, to and including $2,000.00 Fee $433.67 for the first $25,000.00 plus $11.29 for each additional $1,000.00, or fraction thereof, to and including $50,000.00 $715.92 for the first $50,000.00 plus $7.88 for each additional $1,000.00, or fraction thereof, to and including $100,000.00 Valuation based on ICC 2012 Building Valuation tables $1109.92 for the first $100,000.00 plus $6.30 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $3,629.92 for the first $500,000.00 plus $5.25 for each additional $1,000.00, or fraction thereof, to and including $1,000,000.00 $6,254.92 for the first $1,000,000.00 plus $4.20 for each additional $1,000.00, or fraction thereof Application 2022 Fee Escrow Notes Demolition Demolition: Principal structure $100.00 $1,000.00 Demolition: Accessory structure/Septic system (Per unit fee)$50.00 $1,000.00 Retaining walls Based on Value Table $1,000.00 May require City Council approval (Variance or CUP) Plumbing 1.25% of project value, based on valuation table n/a Backflow registration $10.00 Plumbing minimum $26.25 Mechanical (All Types) 1.25% of project value, based on valuation table n/a Mechanical Minimum $26.25 Tent/ Canopy $50.00 Municipal Connection permit n/a Sewer $50.00 SAC (Sewer Availability Charge) (MCES)$2,485.00 Water $50.00 Septic Tank or Repair Permit $350.00 New or replacement Type I or Type III, Residential $750.00 $1,000.00 New or replacement Advanced Septic System Residential $750.00 Plus additional actual costs upto 600.00 All Commercial $750.00 Plus additional actual costs upto 600.00 Subdivision site evaluation review $60.00 Per lot Inspection surcharge for RS zones (Big Island and Deering island) $30.00 plus cost of boat rental if transportation not provided. Reinspection fee $30.00 plus $60/ hour after 1st hour Site inspection without permit Actual costs Quarterly Septic Fee 11.25 Septic Late Fee 3%/Qtr Application 2022 Fee Escrow Notes Miscellaneous Projects Retaining walls requiring building permit Based on Value Table $1,000.00 May require City Council approval (Variance or CUP) Sign structure Based on Value Table Entrance monuments Based on Value Table Fences Based on Value Table Only required for fences above 7 feet. Tent/ Canopy $50.00 Temporary Certificate of Occupancy Escrow 3% of project value, not to exceed $10,000 Contractural Inspection Service Plan Review Charge Per 2012 Building Permit Fee Based on Valuation Fire Protection inspection Actual Cost Per 2012 Building Permit Fee Based on Valuation Fire Plan review fee 65% of permit fee Burning permits No Charge Reinspection $50.00 FIRE All fire suppression and alarm permits are based on value, and include a plan review fee and are subject to the state surcharge. Application 2022 Fee Escrow Notes Cash contribution maximum Residential density of 3 units per acre or less: maximum 4 percent of the predeveloped value Residential density of 3.1- 8 units per acre: maximum 8 percent of the predeveloped value Residential density of 8.1 - 15 units per acre: maximum 12 percent of the predeveloped value Residential density of 15.1 units per acre or more: maximum 20 percent of the predeveloped value Per new lot, or new structure on previously Per buildable acre $16,150.00 $8,060.00 $5,250.00 $3,025.00 $7,275.00 $8,490.00 Where the anticipated park needs are greater than the number of acres to be developed, the city establishes a maximum park dedication maximum: Land Dedication Minimum Area - Developers shall be required to dedicate to the City for parks, playgrounds, trails, open spaces and other public purposes an amount of land proportional to the amount of land being developed and to the number of residential units or commercial industrial employment, as set forth in Section 82-226: 0.1 acres of land per residential dwelling unit 0.1 acres for every acre of commercial or industrial zoned land, or 0.1 per every 14 expected employees, whichever is greater Cash contribution is equal to the amount of land required In those instances where a cash contribution is to be made by the Single Family Residential 2 Acre Zone Single Family Residential 1 Acre Zone Single Family Residential 1/2 Acre Zone Multi Family Residential 4 Units/Acre or Less Multi Family Residential Greater than 4 Units/Acre STORMWATER AND DRAINAGE TRUNK FEES Storm water trunk fees apply to new development and redevelopment of existing properties and provide funding for the storm water infrastructure necessary to serve the City The trunk fee is based on the land use and acreage of the property being developed NEW DEVELOPMENT LAND USE Single Family Residential 5 Acre Zone Stormwater and Drainage Trunk fees as established by Subdivision IV, Section 14-283 of the City Code. PARK DEDICATION Application 2022 Fee Escrow Notes $9,690.00 - all wetland acreage up to the delineation line - acreage of stormwater ponding or similar improvements that provide additional treatment benefits beyond what is required to Multi-family and High-Density Single Family Developments. Trunk fee shall be charged on a per-acre basis, except that the following Commercial or Industrial Fee DOCK LICENSE $325.00 Per Year License Application Fee $50.00 CANOE RACK RENTAL $40.00 Per Slip RENTAL LICENSE License Fee $100.00 2 year term GARBAGE HAULER LICENSE Flat Rate $75.00 Ch. 54, Article III Per Hauler $15.00 Per Truck Transfer Fee $30.00 HOME OCCUPATION LICENSE (Level 2)$100.00 Initial Review Fee Sec. 26-76 $30.00 Annual Review Fee $30.00 KENNEL LICENSES Sec. 62-161 thru 62-185 Commercial Application & Inspection Fee (Annual)$150.00 Residential Application & Inspection Fee (Annual)$50.00 Type Exhibit B Licenses and Miscellaneous Charges TEMPORARY TRAILERS & BUILDINGS License Fees for new licenses may be prorated; after 75% of the license period has elapsed, the fee is reduced by 50%. BEER, WINE & LIQUOR LICENSES Initial Investigation $500.00 Per License Ch. 34, Article II On-Sale & Off-Sale Intoxicating Liquor Licenses Ch. 34, Article II Ch. 34, Article II In state investigation Out state investigation Actual cost Off-Sale Liquor License $150.00 Sec. 34-66 On-Sale Liquor License $5,000.00 Sec. 34-66 On-Sale Wine License $2,000.00 Sec. 34-77 3.2 % Malt Liquor Off-Sale (Annual)$50.00 Sec. 34-66 3.2 % Malt Liquor On-Sale (Annual)$100.00 Sec. 34-66 Setup (Annual)$100.00 Sec. 34-126; 34-143 Club Liquor License Sec. 34-66 (weekday)$200.00 Sec. 34-66 (Sunday)$200.00 Sec. 34-66 Temporary Set-up Permit (1-4 days)$25.00 Each Sec. 34-42 Temporary On Sale 3.2% Malt Liquor (1-7 days)$25.00 Each Sec. 34-82 Temporary Off-Sale Wine License (wine auction)$25.00 Each Sec. 34-42 Temporary On-Sale Wine License (1-4 days)$25.00 Each Sec. 34-42 Temporary On-Sale Liquor License (1-4 days)$25.00 Each Sec. 34-42 1st Violation $500.00 Sec. 34-41 2nd Violation $1,000.00 & 3-day license suspension 3rd Violation $2,000.00 & 2-week license suspension 4th Violation License revocation On-Sale & Off Sale 3.2% Malt Liquor/Wine Licenses Actual cost up to $10,000 Liquor Violations (3 years immediately prior to date of most current violation) AMUSEMENT DEVICE LICENSES Sec. 38-601 thru 38-603 Per Establishment (Annual)$100.00 + Machine fee Per Machine Fee $25.00 Each PUBLIC DANCE LICENSE Annual License $100.00 Individual License $10.00 Gambling & Raffle Investigation $10.00 Ch. 38, Article II Massage Therapy License $100.00 Ch. 31, Article II Background Investigation $150.00 Annual Renewal $100.00 Solicitor/Transient Merchant/Peddler License $100.00 + Actual costs up to $1,500.00 Ch. 30 Tobacco Licenses $125.00 Ch. 50, Article II 1st Offense $150.00 2nd Offense $400.00 3rd Offense & Over $500.00 Penalty for Use of Tobacco Where Prohibited $100.00 Sec. 51-5 MISCELLANEOUS FEES Convenience Fee - Credit Card Transactions 2.75%3.00% + $0.50 for $100.00 or less Returned Check $30.00 Licensee or Employee Violations within 24 month period GENERAL ADMINISTRATIVE LICENSES/FINES Sec. 38-501 thru 38-506 Sewer $50.00 SAC (Sewer Availability Charge) (MCES)$2,485.00 Water $50.00 Horn Quote Basis Connection inspection (Water or Sewer) $100.00 Disconnection inspection (Water or Sewer)$100.00 Residential - City Inspection $250.00 Residential - Private Inspection Review $100.00 Commercial $750.00 Exhibit C Utility Rates and Fees Connection fees have been determined as a way to provide a fair and equitable recovery of the costs associated with providing water and wastewater utility services to new customers to avoid placing these costs on existing customers. The connection fee includes those portions of existing assets that will benefit new customers together with any anticipated future capital improvements constructed for the purpose of providing utility services to new customers. The connection charge applies to those properties not previously assessed for the associated utility project. MUNICIPAL CONNECTION PERMIT ALL SANITARY SEWER AND MUNICIPAL WATER CONNECTION CHARGES POINT OF SALE SEWER SERVICE INFLOW & INFILTRATION INSPECTION FEES Connection to existing City Sewer System: $5,380.00 Fee 2007 Farview Lane Sewer $12,775.00 2010 North Farm Road $21,270.00 2014 Green Trees $22,800.00 2015 Green Trees Extension $21,775.00 Connection to Sewer System in adjacent city Fee Connection to Long Lake Sewer System $1,900.00 or per current Long Lake Fee Schedule Connection to Wayzata Sewer System $1,000 or per current Wayzata Fee Schedule Connection to City Sewer in areas still within their assessment window (less than 15 years since project was assessed) shall pay an amount equivalent to the assessment amount plus interest that residences were charged at the time of the project: SEWER PROJECTS Connection to existing City Water Main $4,370 per unit *or 20% over adjacent city's fee schedule, whichever is greater of Connection to Wayzata Water System $2,351.00 or per current Wayzata Fee Schedule 5/8" (3/4"x7-1/2") meter with horn including sales tax Actual Cost 3/4" (3/4"x9") meter with horn including sales tax Actual Cost 1" meter with horn including sales tax Actual Cost Larger meter Actual Cost CHARGES CREDIT UNIT CHARGE Credit for previously assessed sewer or water units shall be applied against the total number of sewer and water units established for the new use. Current Fee per Adjacent City $1,900.00 or per current Long Lake Fee Schedule WATER CONNECTIONS Fee Connection to Long Lake Water System WATER METER AND HORN SEWER AND WATER UNIT ADJUSTMENT CHARGES Charges shall result from either an intensification of an existing non-residential use or a new non-residential use that replaces a former use on a property located within an area already assessed and served by municipal sewer and water. Each sewer and each water unit adjustment charge shall be equal to the current Service Availability Charge established by the Metropolitan Council Wastewater Services or its successor and shall be payable to the City of Orono upon application for a building permit. Municipal Sewer Rate By Unit: 1st $68.99 per month 2nd $60.98 per month By flow ($68.99/month minimum):$7.66/1000 gallon plus $6.00/month/SAC unit Long Lake Service Minimum Charge (10,000 Gallons or Less Water Usage)$68.99 per month Over 10,000 Gallons Water Usage, per 1,000 Gallons additional $7.66/1000 gallon Wayzata Service Metered Service Minimum Charge (10,000 Gallons or Less Water Usage)$68.99 per month Over 10,000 Gallons Water Usage, per 1,000 Gallons additional $7.66/1000 gallon Unmetered Service Per Property $68.99 per month UTILITY SERVICE FEES Some Properties on Mytlewood and Old Long Lake Road are not connected to water. Wayzata bills Orono based on a quarterly usage of 25,000 gallons. Charge is based on the metered rates and 25,000 gallons. Residential Billing & Ready to Serve Charge $16.67/month Unconnected Property Charge $16.67/month Water Usage Rate Navarre Area (Area #1) and Hwy 12 (Area #2) Tier 1 (0-3,300 gal) $7.78/1000 gal Tier 2 (3,300 - 8,300 gal) $10.89/1000 gal Tier 3 (>8,300)$16.34/1000 gal Chevy Chase Area (Area #3) Tier 1 (0-5,000 gal) $7.78/1000 gal Tier 2 (5,000-8,300 gal) $10.89/1000 gal Tier 3 (>8,300)$16.34/1000 gal Long Lake Area (Area #4) Tier 1 (0-2,600 gal) $7.78/1000 gal Tier 2 (2,600-7,300 gal) $10.89/1000 gal Tier 3 (>7,300 gal)$16.34/1000 gal Multi-Family Billing & Ready to Serve Charge per SAC Unit $16.67/month Unconnected Property Charge $16.67/month Water Usage Rate Tier 1 (0-8,300 gal) $7.78/1000 gal Tier 2 (8,300-33,300 gal) $10.89/1000 gal Tier 3 (>33,300 gal)$16.34/1000 gal MUNICIPAL WATER RATES Commercial Billing & Ready to Serve Charge per SAC Unit $16.67/month Unconnected Property Charge $16.67/month Water Usage Rate Tier 1 (0-8,300 gal) $7.78/1000 gal Tier 2 (8,300-33,300 gal) $10.89/1000 gal Tier 3 (>33,300 gal)$16.34/1000 gal School Billing & Ready to Serve Charge per Meter $50.00/month Unconnected Property Charge $50.00/month Water Usage Rate Tier 1 (0-8,300 gal) $7.78/1000 gal Tier 2 (8,300-33,300 gal) $10.89/1000 gal Tier 3 (>33,300 gal)$16.34/1000 gal Federally Mandated Safe Drinking Water $2.43/quarter or $0.81/month Testing Program (Charged per service connection) Quarterly Service Charge for Non-Functioning or Inaccessible Water Meter $100.00 Bulk sale to Minnetonka Beach for Lafayette Ridge Area Processing Fee (Per Monthly Billing Cycle)$25.00 Plus Water Usage Rate $7.78/1000 gal Bulk sale - All Others Processing Fee (Per Monthly Billing Cycle)$25.00 Plus Water Usage Rate $7.78/1000 gal i.e. Fill swimming pool or watering sod. Assessment Charge for Unpaid Accounts Certified $25.00 County Fee for Unpaid Accounts Certified $2.50 Water Turn-On $50.00 Water Turn-off $50.00 Water System Repair/Replacement if damage caused by property owner: Labor - Current Hourly Rate Parts - At Cost One residential unit: $15.73/month or $47.18/quarter Non-residential unit:Based on “Residential Equivalent Factor” $6.00/month or $18.00/quarter Recycling Cart from Waste Management No Charge The basic intent of storm water regulations is to minimize the impact of development on natural drainage systems. Any Penalty for late payment of sewer/water bills - 1% monthly if not paid by due date (applied to the total unpaid balance). Interest at 8% on unpaid water/sewer bills certified. STORM WATER UTILITY RATES RECYCLING CHARGE $100.00 per month Right of Way Permit $50.00/permit Right of Way Escrow (for other than Public Utility) $1,500 New Street Intersections (See zoning section - Special improvement fees) On-Call Service to Other Cities Base On-Call Fee 65.00/day Call-Out Fee Actual wage and equipment rates PUBLIC WORKS SUPPLIES & SERVICES SUMP PUMP SURCHARGE Fee Applicable Code or MN State Statute (MSS) Number Unsafe Operation 66-259 Unreasonable Acceleration $60.00 66-258 Exhibition Driving $60.00 66-7 Failure to Obey Traffic Control $60.00 169.06 MSS Expired Registration $60.00 169.79 MSS Unsafe Equipment $60.00 169.47 MSS Loud Exhaust $60.00 169.69 MSS No Driver License in Possession $60.00 171.08 MSS Failure to Change Address on DL $60.00 171.11 MSS Driving to Avoid Traffic Signal $60.00 66-5 Operation $60.00 66-159 Equipment $60.00 66-160 Hours of Operation $60.00 66-159 $60.00 Dog at Large $60.00 62-104 Animal License Required $60.00 62-131 Feces Clean Up $60.00 22-95 & 22-114 Barking Dog $60.00 62-10 $60.00 Public Nuisance/General Prohibition $60.00 70-4 Peace and Safety Violation $60.00 70-166 Discharge of Firearm $60.00 70-97 Exhibit D Administrative Offenses TRAFFIC/VEHICLE OFFENSES SNOWMOBILE VIOLATIONS ANIMALS ADMINISTRATIVE OFFENSES (POLICE ADMINISTERED) PUBLIC NUISANCES No Permit $60.00 58-186 Negligent Burning $60.00 58-193 No Open Burning $60.00 58-193 Loud Noise Prohibited $60.00 58-120 Hours of Operation $60.00 22-89 Operating a Motor Vehicle within Park $60.00 22-92 No Permit $60.00 22-102 Feces Clean Up $60.00 22-95, 22-102 & 22-114 $60.00 Violation of General Provisions $60.00 18-4 Sign Impoundment Fee $25.00 78-1473 $60.00 Curfew $60.00 70-274 Possession of Tobacco $60.00 609.685 Sub 3 MSS 1,000-9,999 lbs overweight .15 cents per lb over 169.824 Sub 1 MSS General $25.00 66-78 Seasonal 0200-0600 on $25.00 66-80 Street Prohibited Handicapped $60.00 66-85 Fire Lane $25.00 46-85 JUVENILE SEASONAL OVERWEIGHT VEHICLES PARKING OPEN BURNING NOISE PARK VIOLATIONS SIGNS VIOLATIONS Watering Restrictions $60.00 610.50 Sub 15 MSS Placing Snow on Street $25.00 18-5 SPECIAL EVENT VIOLATIONS 1st Violation $250.00 2nd Violation $500.00 3rd Violation $1,000.00 MISCELLANEOUS 2022 Fee GOLF COURSE FEES - Effective Date: 2021 Season MONDAY THRU SUNDAY RATES Individual (Regular)$20.00 Juniors (12 -18 years old)$12.00 Seniors (60 years or older)$16.00 Second Round $10.00 Children under 12 golf free with an adult SEASON PASS RATES (Unlimited Play)Base Resident Individual Season Pass $570.00 $455.00 Junior Season Pass (12 - 18 years old)$320.00 $280.00 Senior Season Pass (60 years or older)$470.00 $350.00 Family Season Pass $665.00 $550.00 (Entire Family*) GOLF CART RENTAL RATES Motorized Cart Rental/Per Person for 9 holes $11.00 Motorized Cart Rental/Per Person for 18 holes $15.00 Pull Carts/Per Round $5.00 Golf Clubs/Per Round $5.00 CONCESSION RATES As Posted Exhibit E Park Fees * Family meaning: Immediate family living in the same household. Children must be 18 years old or younger. The golf course superintendent shall have the authority to deviate from these prices for the purpose of promoting specials and for special Resident $25.00 Non-Resident $40.00 Passes will go on sale for the following year on Nov 1st. Passes to be prorated at 50% on August 1st. SUMMIT BEACH CANOE RACK RENTAL $40.00/slip BEDERWOOD & HACKBERRY SPORT FIELDS PARK FACILITY USE PERMIT Resident (Individual, business or group)$15.00 Non-Resident (Individual, business or group)$25.00 LURTON PARK PASSES The cost to cover replacement passes will be $5.00 2022 Fee Sec. 62-104 1st Offense $60.00 2nd Offense $80.00 3rd Offense $100.00 After Hours, Weekend & Holiday Release Charge $75.00 Ch. 62, Article I 1st Offense $55.00 2nd Offense $65.00 3rd Offense $75.00 Trace & Catch Animal $35.00 Per Hour Trailer Charge $55.00 Actual Cost $200.00 + $60.00 each additional day; actual costs up to $1,500 Sec. 38-801 thru 38-803 Sec. 70-99 Sale and/or Storage of Consumer Fireworks $100.00 Ch. 70, Article III Pest Control (limited use)$25.00 Game Animals (limited use)$25.00 Annual (Club Only)$25.00 $20.00 Sec. 70-71 FIREARMS DISCHARGE PERMIT LIMITED TRAPPING PERMIT Exhibit F Police Administration DOGS AT LARGE - RELEASE FEE CARE OF IMPOUNDED ANIMAL LARGE ASSEMBLY LICENSE (over 300 people) FIREWORKS PERMIT ANIMALS AT LARGE (Other than dogs) - RELEASE FEE + 0.31/Mile (Total Distance) $100.00 Ch. 66, Article VI Special Events involving fireworks $250.00 Ch. 42, Article III 1st false alarm/per calendar year No Charge 2nd false alarm/per calendar year $50.00 3rd false alarm/per calendar year $100.00 4th false alarm/per calendar year $150.00 5th and over false alarm/per calendar year $250.00 Ch. 42, Article III 1st false alarm/calendar year No Charge 2nd false alarm/calendar year $75.00 3rd false alarm/calendar year $250.00 4th false alarm/calendar year $350.00 5th & over false alarm/calendar year $500.00 Each Call $25.00 Per Application Officer 119 Rate $125.00 Per Hour Police Reserve Officers $30.00 Per Hour First Two Copies $0.25 Per Page Additional Copies $0.25 Each More than 100 pages (actual costs) SPECIAL EVENTS PERMIT POLICE SPECIAL SERVICES (3 Hours Minimum) FINGERPRINTING SERVICE FALSE FIRE ALARM USER FEES FALSE POLICE ALARM USER FEES COPY SERVICE - Police Records NON-RESIDENTS ONLY (Residents No Charge) PHOTOS $10.00 On CD VIDEO Booking Room Video $20.00 Squad Videos $20.00 Body Worn Cameras $50.00 AUDIO BTA Audio $10.00 Paper signs (no lath included)$1.00 STATEMENTS $10.00 $50.00 For CD & (transcribed copy or CD when available; subject to Data Privacy Act - will be charged an actual hourly fee) Per Gun (Police Policy 3056)FIREARM STORAGE FEES SIGNS: "NO PARKING ORDER OF POLICE" Municipal Code Book - Portions Ch 78 only (Zoning Code) w/revisions Ch 82 only (Subdiv. Code) w/revisions Other Individual Chapters Binder $5.00 GIS and City Maps 8 1/2 x 11 11x17 17x22 22x34 Black & white $0.25 $1.00 $2.00 $4.00 Color $2.00 $4.00 $8.00 $16.00 City Street Number Maps $0.25 $2.00 $5.00 Building & Planning Publications Listing Information $10.00 Assessment Search - Written (Verbal searches not given) Fax Charge Copy Service (for public City records only)$ .25 Each 11" x 17" copies $ 1.00 Each Individual copies of Ordinance Sections (1 copy)No Charge Building Plan Copies Labels from Utility Billing System Electronic Labels Information Provided on CD or USB Drive Information Provided on DVD Shipping/ Handling mailing of requested information Professional Time Clerical Time Building/Legal/Engineering Consultants Mileage/Copies/Postage/Etc. Returned Check Charge $30.00 Ex G Documents and Services Cost of copying service, ZONING DEPARTMENT DOCUMENTS As Posted - Prices subject to Change $25.00 loose $15.00 loose $ .25 Per Page GENERAL ADMINISTRATIVE DOCUMENTS $20.00 Per Parcel No charge up to 6 pages; $.25 Each Additional Surcharge for Staff Expense in Excess of Regular Fees $ 50.00 Per Hour Reprint of Oversized Documents that have been microfilmed Cost of Copying, Messenger Service & Min. Clerical Fee of $5.00 (Entire amount to be paid upon request) $ .05 Per Label (Approximately $150.00) $10.00 Per sheet , 30 Labels max per sheet $ 30.00 Per Hour Actual Billed Cost Actual Cost $ 10.00 Per CD/USB $ 20.00 Per DVD $ 3.00 + cost of information (DVD, pages, etc.) AGENDA ITEM 1. Purpose. The purpose of this action item is to accept the quotes for the replacement of the generator at Lift Station #14. 2. Background. The generator experienced an engine failure on July 19th, after trouble shooting the problem it was determined it is cheaper to replace vs. repair. The repair estimate was $11,000 and would be the 2nd repair since 2020. 3. Project Scope. This project will replace existing 30kW backup generator for lift station 14 which services the sanitary sewer system in the Forest lake bridge area. 4. Cost. The City received two quotes for generators, the lowest quote from a qualified contractor for Generators was from Modern Power Solutions for $18,485.00 Total cost for the of the project is $ 18,485.00 a. Generator Contractor Total Quote Modern Power Solution (Cummins Genset) $ 18,485 All –Phase Electric (Cummins Genset) $ 19,700 5. Funding. This project will be funded through the Sanitary Sewer Enterprise Fund. The Sewer Fund balance is projected to be $ 3,000,000 at the end of 2022. 6. Staff Recommendation. I recommend that Council accept the quotes from Modern Power and Holton Electric. COUNCIL ACTION REQUESTED Motion to accept the quote in the amount of $18,485 from Modern Power installation of a replacement backup generator at Lift Station #14. Prepared By: SO Reviewed By: DJG Approved By: Item No.: 7 Date: August 8th, 2022 Item Description: Back Up Generator Replacement for Lift Station #14 (Orchard Beach) Presenter: Scott Oberaigner Public Works Supervisor Agenda Section: Consent Agenda AGENDA ITEM Prepared By: Reviewed By: A.Carlson Approved By: 1. Purpose. The purpose of this action item is to award the Watermain Replacement Project (22-023). 2. Background. At the January 24th, 2022 Council Meeting the City Council authorized the design and engineering of a water main replacement project along CSAH 19 south of CSAH 15. Staff and Bolton and Menk prepared designs and solicited bids. In July the initial round of bids came in higher than expected. The council rejected those bids and authorized staff to reduce the scope of the project and re- bid. Bids were received on August 3, 2022. 3. Scope of Work. The project consists of the replacement of the water main the runs south along Shadywood Road (CSAH19) from Shoreline (CSAH15) to Maple Ridge Lane. 4. Cost. The city received 3 bids. The lowest bid was for $901,016 from Geislinger & Sons. The Bid Summary is at Exhibit A. In addition to the construction cost, Bolton and Menk provided a proposal of NTE $54,500 for construction oversight. (Exhibit B) Who Work Cost Status BMI Design and Engineering $59,500 Previously Approved Geislinger & Sons Construction $901,016 BMI Construction Oversight $54,500 Not to Exceed TOTAL $1,015,016 5. Funding. Funding for the project will come from a combination of the water fund and ARP Funds received. Fund Amount Est. 2022 End of Year Fund Balance Water Fund $516,000 $742,662 ARP Funding $500,000 NA Total $1,016,000 6. Staff Recommendation. I recommend award of the bid to Geislinger & Sons in the amount of $901,016 and approval of the proposal form Bolton and Menk for construction services. COUNCIL ACTION REQUESTED Move to award the Watermain Replacement Project (22-023) to Geislinger & Sons for $901,016 and to accept the not to exceed proposal from Bolton and Menk for Construction oversight. Exhibits A. Project Plan. B. BMI Construction Services Proposal Item No.: 8 Date: August 8, 2022 Item Description: Watermain Replacement Project (22-023)- Award Presenter: Adam T. Edwards City Administrator/City Engineer Agenda Section: Consent Agenda Exhibit A. Bid Table H:\ORNO\2022 New Projects\Fee Estimate - 2022 CSAH 19 Watermain Replacement - Construction Services.docx August 3, 2022 City of Orono Attn: Adam Edwards PO Box 66 Orono, MN 55323 RE: CSAH 19 Watermain Replacement – Phase I - Construction Services Dear Adam: As requested, we have prepared a scope of services and estimated fee for the construction services associated with the CSAH 19 Watermain Project, Phase I. Scope of Services Public Coordination/Communications Bolton & Menk is committed to supporting the coordination requirements of this project with qualified staff and will proactively engage affected property owners and the general public with timely and accurate information via newsletters and website updates as desired by the City. Construction Staking and Observation Construction staking will be provided along with full time construction observation. Duties of the Construction Observer will include the following: • Attendance at the pre-construction meeting and all construction-related meetings • Serve as a liaison between the City and the contractor • Review of the completed work to determine if the project is in general conformance with the plans and specifications • Review of all materials testing • Maintenance of construction documentation • Communication with affected property owners, as necessary, to address their construction- related concerns and issues Construction Administration Construction administration duties will include the following: • Administering a pre-construction meeting and weekly construction meetings • Review of shop drawings • Preparation of pay estimates • Contractor Communications • Liaison with City Staff and Council CSAH 19 Watermain Replacement Page 2 H:\ORNO\2022 New Projects\Fee Estimate - 2022 CSAH 19 Watermain Replacement - Construction Services.docx Record drawings detailing the completed improvements as recorded by the construction observer and the City of Orono’s contractor will be completed and furnished to the City in hard copy and electronic format. Record plans will also be linked to the City mapping system and the City’s GIS system will be updated. Fee Estimate Based on the scope of services described above, we propose a not-to-exceed of $54,500 to be billed on an hourly basis. Please let me know if you have questions or need additional information. Sincerely, Bolton & Menk, Inc. David P. Martini, P.E. Senior Principal Engineer AGENDA ITEM Prepared By: mcc Reviewed By: L.Oakden Approved By: 1. Purpose. This application is regarding a lake setback variance to permit reconstruction of lake slope retaining walls with an expanded footprint due to a change in wall material. 2. MN§15.99 Application Deadline. The application was received on June 22, and considered to be complete on June 23rd. Therefore the 60-Day review period expires on August 22, 2022. 3. Background/ Summary. The subject property has an existing, aging timber wall and stair system that is exhibiting signs of failure. The existing walls are tiered and support the hillside of the property. Their configuration allows for the existing lake access stairs with deck platforms. The bottom wall is located approximately 6 feet from the OHWL. They plan to reconstruct all of the walls, stairs, and decks in kind. Due to a proposed change in wall materials from timber with an approximate footprint of 6- inches to an 11-inch modular block material (Anchor Diamond Pro), the new walls will have a slightly larger footprint. A lake setback variance is required. 4. Planning Commission Vote and Comment. On July 18th, the Planning Commission held a public hearing. Following the public hearing the Planning Commission voted 6 to 0 on a motion to approve the setback variance as requested. 5. Public Comment. No comments from the neighbors were received. 6. Staff Recommendation. Staff recommends approval. COUNCIL ACTION REQUESTED Motion to adopt the approval of Resolution No. 7279. Exhibits A. Draft Resolution B. Proposed Plans C. Wall Photos D. Draft PC Minutes E. PC Staff Report 07/18/2022 References PC Exhibits 07/18/2022 A. Application B. Practical Difficulties Documentation Form C. Existing Survey D. Engineered Plans E. Plans F. Submitted Hardcover Calculations G. Photos H. Property Owners List I. Plat Map Item No.: 9 Date: 8 August 2022 Item Description: LA22-000034 – Concept Landscaping o/b/o Deborah Jordan, 1350 Rest Point Circle, Variance – Resolution No. 7279 Presenter: Melanie Curtis Planner Agenda Section: Consent Agenda CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7279 1 A RESOLUTION APPROVING A VARIANCE FROM MUNICIPAL ZONING CODE SECTION 78-1279 FILE NO. LA22 -000034 WHEREAS, on June 22, 2022, Concept Landscaping (“Applicant[s]”), applied for a variance from the City Code on behalf of the owners Claude and Deborah Jordan for the property addressed 1350 Rest Point Circle and legally described as: Lot 12, Rest Point Park, Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-1279 to allow construction of replacement retaining walls with an increased footprint in the lake yard; and WHEREAS, on July 18, 2022, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on July 18, 2022, the Planning Commission recommended approval of the variance; and WHEREAS, on August 8, 2022, the City Council reviewed the application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variance as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: 1. This application was reviewed as Zoning File #LA22-000034. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1B Zoning District. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7279 2 3. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 4. Applicant has applied for the following variance: a. Lake Setback Variance 5. In considering this application for variance, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” Preserving and protecting the existing lake yard slope is in harmony with the intent of the ordinance. The proposed retaining walls will be screened with vegetation to maintain the rural nature of the lake wherever feasible. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The proposed retaining walls will continue to maintain the integrity of the slope and protect the slope from catastrophic failure which protects the lake. The proposal is consistent with the comprehensive plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The owner proposes to install retaining wall improvements which are residential in nature and reasonable from a residential scope. b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The owner has proposed retaining walls to protect against failure of the slope. The existing slope of the lake yard was not the result of actions by the owner; c. The variance, if granted, will not alter the essential character of the locality.” CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7279 3 There are existing retaining walls in the lake yard. The variance to permit the expanded retaining wall structure within the 75-foot lake setback will help to maintain the existing slope and character of the area. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as residential improvements are permitted to support a residential use in the LR-1B District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The slope of the property combined with the pre-existing improvements are unique conditions affecting the Property. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The steep slope, existing timber wall configuration, and the existing improvements create conditions which do not apply to all of the adjacent properties. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” Granting a lake setback variance to allow the retaining walls within the 75-foot lake setback to be reconstructed with an expanded footprint is reasonable, is a better solution long-term, and is necessary to preserve the rights of the owner. The variance is supported by the vulnerable slope on the Property. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting the lake yard setback variance allowing the retaining walls within the 75-foot lake setback will not adversely impact health, safety, comfort or morals, or in any way be contrary to the ordinances. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7279 4 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The proposed walls within the lake yard will continue to preserve the integrity of the slope and there is no conforming location to install the retaining walls which would protect the slope. Preserving the existing wall is necessary for the protection of the slope and the lake. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section 78-1279 to allow construction of replacement retaining walls within the lake yard, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the survey and building plans submitted by the Applicants and annotated by City staff, attached to this Resolution as Exhibits A & B. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A building permit must be obtained within one year of the date of Council approval, or the variance will expire on that date (August 8, 2023). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 8th day of August, 2022. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Resol. No. 7279 Exhibit A ! " # $% $ # & && % '' ( % ) ' ' ' % ! %*+ + ,-*#. / ! " # $% $ # & && % '' ( % ) ' ' ' % ! %*+ + , - . ! " # $% $ # & && % '' ( % ) ' ' ' % ! %*+ + , -#. / ! " # $% $ # & && % '' ( % ) ' ' ' % ! %*+ + ,-.#/ 0 ! " # $% $ # & && % '' ( % ) ' ' ' % ! %*+ + ,- #. / June 9, 2022 (Revised June 16, 2022) Jared Smith Concept Landscaping PO Box 430 Mound, MN 55364 Submitted by email: JaredMound@aol.com RE: Segmental Retaining Wall Typical Sections Project Location: 1350 Rest Point Circle, Mound, Minnesota Project No. 22-6321 Dear Mr. Smith: This letter includes important details regarding the attached design typical engineered section for the segmental retaining walls at the above location. This design is based on information provided by you in during a site visit on June 2, 2022, including a description of the project and existing site survey and wall layout information. Revisions include changes to the plan view and wall cross-section designs. The attached typical section(s) should be referenced for construction details. Special note should be made of the wall embedment depth and the geosynthetic fabric (geogrid) length as measured from the front face of the wall, or of the no-fines concrete wall backfill material depths, as applicable. Where tree roots conflict with geogrid installation, geogrid lengths may be modified and cut to work around roots. No- fines concrete or double-stacked block walls may also be used as an alternative. Refer to Anchor Retaining Wall Systems Standard Specifications for installation information and details. The design of the wall system assumes the following: x Wall location: Replacement of existing timber retaining walls (similar configuration) x Wall height(s): 4.67-ft (maximum exposed heights, not including cap units) x Minimum embedment depth = 6” min., or as noted x Soil conditions: Silty/Clayey Sand, friction angle = 30.0 degrees, unit weight of 125.0 lb/ft3 x Required minimum soil bearing capacity = 1500 psf x Surcharge load at top of walls: None x 2:1 maximum slope at top and bottom of walls x Block Type: Anchor Diamond Pro x Geosynthetic Fabric Type: Mirafi 3XT x Drainage pipe: Required These walls have not been designed for ground water surcharge loads. Direct all surface and groundwater drainage away from the walls. Methods to do so include but are not limited to the following: drainage swale, site grading, retention ponds, etc. Details of water control are left to the wall contractor or the site civil engineer. Please contact Criterium-Schimnowski to provide additional site assessment services if desired. The wall design was performed using the design guidelines presented in the third edition of the “Design Manual for Segmental Retaining Walls” (DMSRW) published by NCMA in 2009. Additional information requested by Criterium-Schimnowski Engineers but not available includes: geotechnical site survey and 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 2 soil data. If soil conditions, proposed wall layouts, or other design parameters vary from that assumed, a revised analysis may be needed. Please call me if you have any questions or need more information. This design has been prepared in strict confidence with you as our client. Reliance upon our design by other parties is strictly prohibited. If you choose to share our design, you agree to indemnify, defend and hold harmless the Engineer from any third-party action. No reproduction or re-use is permitted without express written consent. Further, we will not release this design to anyone without your permission. Thank you. Sincerely, Paul Schimnowski, P.E. MN #40126 I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Paul Schimnowski, P.E. Date: June 16, 2022 License #: 40126 (MN) 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 3 RetainingWallCompletionReportsand ConstructionInspections To:Retainingwallcontractorsand/orallclientsutilizingourservicesforretainingwallengineering. From:PaulSchimnowski,PE RetainingWallEngineer CriteriumͲSchimnowskiEngineers(CSE) Paul@CriteriumMN.com Date:April1,2022 Tohelpcontractorsandotherinterestedpartiesnavigatethechangesthatmanycitiesandjurisdictions aremakingregardingconstructioninspectionrequirementsandfinalapprovalletters,wearemaking thefollowingrecommendations: 1. RequestthattheCityBuildingOfficialcompletetheRequiredInspectionsofRetainingWalls form,attached. 2. Notifyyourclientofthepotentialforaddedcostdependingoncity/buildingofficial requirements.Contactourofficeorrefertoourserviceagreementforcurrentfees. 3. ContactCriteriumͲSchimnowskiEngineerstoscheduleanyrequiredinspections.Adequatelead timeisrequired.SimilartotypicalCityinspections,atleastoneweekisrecommended.We cannotguaranteeimmediateservice. 4. TakedailyconstructionprogressphotosforyourrecordsandforsubmittaltoCriteriumͲ SchimnowskiEngineersuponrequest. 5. CompletetheStatementofConformanceforyourrecordsandforsubmittaltoCriteriumͲ SchimnowskiEngineersuponrequest.Formattached. IfaWallCompletionReport(PostͲbuiltConformanceLetter),isrequestedofCSE,wewillrequirethat youprovideconstructionphotosandStatementofConformance.Inaddition,CSEwillneedtoperform asitevisitoncefinalgradingiscompleted.Withoutthesethreeitems,weareunabletocommenton theconstruction/conformanceofthewall. Weareheretohelpasmuchaspossible.Theseinspectionrequirementsarenotcomingfromus. Contactusifyouhaveanyquestions. 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 4 StatementofConformance (forRetainingWallContractor) ProjectName/Address:_____________________________________ _____________________________________ _____________________________________ Formtobesubmittedwithallconstructionprogressphotosbytheretainingwallcontractorattimeof wallcompletion.ThisformisrequiredinordertorequestawallcompletionletterfromCSE: _____Blocktype:_____________________________________________________________________ _____Geogridtype:___________________________________________________________________ _____Descriptionofsitesoils(i.e.sand,clay,loam):_________________________________________ _____Levelingpadsizeandtypeofmaterial:_______________________________________________ _____Embedmentdepth(coursesofblockburied):_________________________________________ _____Draintiletypeanddiameter:_______________________________________________________ _____Drainageaggregatetypeandlayerthickness:_________________________________________ _____Geogridlengthsandelevations:____________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Compactionmethodsused:_______________________________________________________ Iherebycertifythat,tothebestofmyknowledge,theworkisinconformancewiththeapprovedplans andspecifications,manufacturerrecommendationsandrequirements,and/ortheapplicable workmanshipprovisionsofthecode. ______________________________________________Date____________________________ SignatureofPersoninResponsibleCharge _____________________________________________________________________________________ PrintedName/Title/Company Submitcompletedformto:Melissa@CriteriumMN.com 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 5 RequiredInspectionsofRetainingWalls (forCityBuildingOfficial) ProjectName/Address:_____________________________________ _____________________________________ PermitNumber:_____________________________________ Pleasechooseoneofthefollowing: _____1.Noinspectionsarerequired. _____2.Thecitywillperformallneededinspections. _____3.TheretainingwallengineerͲofͲrecordmustcompletethefollowing: _____Finalsitevisitwithwallcompletionletter.Contractor’sStatementof Conformanceisacceptedinlieuofperiodicsitevisitsduringconstruction. _____Periodicsitevisitswithawallcompletionletterthatincludesdocumentationof theengineer’sconstructionobservations. Numberofinspectionsrequiredbybuildingofficial:________________ ______________________________________________ SignatureofBuildingOfficialorAuthorizingPersonnel _____________________________________________________________________________________ PrintedName/PhoneNumber ________________________________ Date 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 6 DESIGNPROVISIONS: 1.REFERTOWALLMANUFACTUER’SSPECIFICATIONSFORSEGMENTALRETAININGWALLUNITSASTHEY AREINTEGRALTOTHESEPLANS. 2.SEEPRODUCTMANUFACTURERINSTALLATIONRECOMMENDATIONSFORCONSTRUCTIONSEQUENCE ANDINSTALLATIONNOTES. 3.THEDESIGNOFTHISRETAININGWALLSYSTEMWASBASEDUPONTHEEFFECTIVESTRENGTH PARAMETERSSHOWNONTHE“SOILVALUES”TABLE.UNLESSOTHEWISENOTED,NOFORMALSOIL INFORMATIONWASPROVIDEDBYTHEOWNEROROWNER’SREPRESENTATIVE.IFSOILCONDITIONS VARYATTIMEOFCONSTRUCTION,WALLENGINEERMUSTBECONTACTEDTODETERMINEIFAREVISED DESIGNISNEEDED. 4.THEWALLDESIGNWASBASEDONTHEINFORMATIONNOTEDINTHELETTERABOVE. 5.NOPRODUCT/MATERIALSUBSTITUTIONSWILLBEALLOWEDWITHOUTPRIORWRITTENPERMISSIONOF CRITERIUMͲSCHIMNOWSKIENGINEERS. 6.FINALSITEGRADESANDROOFDRAINSSHALLDIRECTCONCENTRATEDRUNOFFAWAYFROMANY RETAININGWALL(S).UNLESSOTHERWISENOTED,THEWALL(S)HASNOTBEENDESIGNEDFOR HYDROSTATICSURCHARGELOADING. 7.THEWALLDESIGNWASPERFORMEDUSINGDESIGNGUIDELINESPRESENTEDINTHETHIRDEDITIONOF THE"DESIGNMANUALFORSEGMENTALRETAININGWALLS"PUBLISHEDBYNCMA. DESIGNLIMITATIONS: 1.THEINFORMATIONPROVIDEDWITHINTHESEDOCUMENTSISFORTHESTRUCTURALDESIGNOFTHE PROPOSEDRETAININGWALL(S)ONLY.THEREQUIREMENTSFORAND/ORWORKRELATEDTO HANDRAILS,GUARDRAILS,OROTHERLIFE/SAFETYISSUESAREEXCLUDEDFROMTHESEDOCUMENTS ANDARETOBEPROVIDEDBYOTHERS. 2.SITELAYOUTANDGRADINGDESIGNARENOTINCLUDEDINWALLDESIGNSERVICES.THOSESERVICE ARETHERESPONSIBILITYOFTHESITECIVILENGINEER. 3.INTERNALCOMPOUNDSTABILITY(ICS)HASBEENCALCULATEDFORTHISPROJECTBYCRITERIUM. HOWEVER,ICSISNOTASUBSTITUTEFORAGLOBALSTABILITYANALYSISWHICHSHOULDBE PERFORMEDBYAQUALIFIEDGEOTECHNICALENGINEER.ADDITIONALSUBSURFACEEXPLORATIONMAY BEREQUIRED. SUGGESTEDQUALITYASSURANCEREQUIREMENTS: 1. AQUALIFIEDENGINEERORTECHNICIANSHALLSUPERVISETHEWALLCONSTRUCTIONTOVERIFYSITE SOILCONDITIONS.IFTHEPROJECTGEOTECHNICALENGINEERDOESNOTPERFORMTHISWORK,A QUALIFIEDGEOTECHNICALENGINEER/TECHNICIANSHALLBEHIREDTOASSURETHERETAININGWALLIS CONSTRUCTEDWITHPROPERSOILPARAMETERS. 2. AQUALIFIEDGEOTECHNICALENGINEERSHALLBECONSULTEDTOVERIFYTHESUITABILITYOFDESIGN ASSUMPTIONSMADEBYCRITERIUM. 3. WALLEXCAVATIONANDSOILSSHALLBEINSPECTEDFORGROUNDWATERCONDITIONS.THE GEOTECHNICALENGINEERSHALLDETERMINEADDITIONALDRAINAGEPROVISIONSTOBE INCORORATEDINTOTHEWALLDESIGN. 4. THEWALLDESIGNENGINEERSHALLBEHIREDTOPERFORMAPREͲCONSTRUCTIONSITEVISIT. 5. THEWALLDESIGNENGINEERCANBEHIREDFORCONSTRUCTIONOBSERVATIONSERVICES. 6. THEWALLCONTRACTORISRESPONSIBLEFORMAINTAININGQUALITYCONTROLFORTHE CONSTRUCTIONOFTHEWALLINACCORDANCEWITHCONTRACTREQUIREMENTS. 7. SEEPROJECTCONTRACTDOCUMENTSFORSPECIFICDETAILSONTHESCOPEOFWORKTHATWILLBE PROVIDEDBYALLPARTIES. 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 7 T E R M S A N D C O N D I T I O N S - Effective Nov.10.2020 This design is expressly made subject to the following terms and conditions to which all persons that receive and rely thereon agree: 1. STANDARD OF SERVICE: Services performed by ENGINEER under this agreement shall be performed in a manner consistent with the skill and care ordinarily used by members of the engineering profession practicing under similar conditions at the time and in the locality the services are performed. x CLIENT recognizes that interpretations and recommendations of ENGINEER are based solely on the information available to the company. x ENGINEER will be responsible for those interpretations and recommendations, but shall not be responsible for the interpretation by others of the information developed. x Services provided reflect the professional judgment of ENGINEER, to the best of ENGINEER's knowledge, information, and belief as of the date hereof. x No other warranty or guarantee, express or implied, is made. 2. SCOPE OF SERVICE: Services performed by ENGINEER are expressly limited by the scope of services ENGINEER has been employed by CLIENT to perform. 3. TERMS OF PAYMENT: ENGINEER may require a retainer fee to be paid before commencing any project. Extended engagements may require interim invoicing on a weekly, monthly, or other basis. At the completion of the project, we will issue a final invoice. Payment of each invoice is due upon presentation. Failure to pay invoices within the allotted time period will constitute a breach of contract and may result in suspension of work until such time as all overdue payments are made in full. Should any suspension occur because of overdue payments, the time for contract completion, if any is stated, shall be extended by the period of the suspension. Invoiced balances remaining unpaid for thirty (30) days after the date of invoice may be charged a finance charge in the amount of ½ percent per month from the date of invoice. If an invoice remains unpaid and it becomes necessary, in the ENGINEERS’ opinion to initiate collection procedures, the CLIENT hereby agrees to pay all collection costs including, but not limited to, reasonable fees for attorneys retained by ENGINEER and court costs at our standard billing rate for time necessitated in court appearances or presentation of claim to the appropriate court jurisdiction. Exceptions to payment terms must be specified in writing. 4. OWNERSHIP OF DOCUMENTS: All reports, field data, field notes, calculations, estimates and other documents (‘reports’) prepared by Engineer, as instruments of service, shall remain the property of Engineer. CLIENT agrees that all reports furnished to CLIENT or his agents, which are not paid for, will be returned upon demand and will not be used by CLIENT for any purpose whatever. ENGINEER will retain all pertinent records relating to the services performed for a period of five years following submission of the report, during which period the records will be made available to CLIENT at all reasonable times. 5. COPIES OF DOCUMENTS: ENGINEER agrees to furnish CLIENT with an electronic copy of our report, drawings, or documents relating to the services performed. Hard copies, bound or unbound, may be provided upon request at charge of cost plus 10 percent, at ENGINEERS’s sole discretion. ENGINEER shall retain an electronic copy of the final documents in its files for a period of five years. 6. INSURANCE: ENGINEER represents and warrants that it is protected by Workers Compensation insurance and has such coverage under Public Liability and Property Damage insurance policies which ENGINEER deems adequate. Certificate for all such policies of insurance shall be provided to the CLIENT upon request in writing. ENGINEER shall not be responsible for any loss, damage or liability arising from any acts by CLIENT, its agents, staff and other consultants employed by it. 7. TERMINATION: This agreement may be terminated by either party by written notice. In the event of termination, ENGINEER shall be paid for services performed and expenses incurred up to the termination notice date. Neither CLIENT not ENGINEER may delegate, assign, sublet or transfer his/her duties or interest in this Agreement without the written consent of the other party. 8. LIMITATION OF LIABILITY: To the fullest extent permitted by law, CLIENT and ENGINEER (a) waive against each other, and the other's employees, officers, directors, agents, insurers, partners, and consultants, any and all claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to this report, (b) agree that ENGINEER’s total liability to CLIENT shall be limited to the total amount of compensation received by ENGINEER, (c) agree that CLIENT will defend, indemnify, and hold harmless ENGINEER from and against any claims, liabilities, actions, demands, losses, damages, costs and expenses sustained by any third-party not granted reliance on ENGINEER’s reports and services, (d) agree that any action arising out of or related to the services provided must be brought to ENGINEER’S attention no later than two (2) years after the date of the services, and (e) if an action is brought against the ENGINEER and the ENGINEER prevails, ENGINEER shall be entitled to recover costs and expenses, including reasonable attorneys' fees and costs. 9. FORCE MAJEURE: The engineer shall not be responsible or liable for any failure or delay in the performance of its obligations under this contract arising out of or resulting from any cause or event beyond our control, such as war, strike, crime, epidemic/pandemic, regulations and/or restriction imposed by any government agency, or other event. CERTIFICATE OF SURVEY FOR CORNERSTONE INDUSTRIES, INC. OF LOQ 12, REST POINT PARK HENNEPIN COUNTY, MINNESOTA EXISTING ELEVATIONS : 1) Garage = 973.0 2) First floor = 973.9 3) Basement = 963.8 0 l X601 ! 5T 976.1) N EXISTING LEGAL DESCRIPTION OF PREMISES Lot 12, REST POINT PARK o : denotes iron marker HOUSE 1354 DECK 976.1) 0 976.4)y i YYY OJ R`c ORONO torr QC) Ill -0099 4 v City of Orono POLE OWER Planning & Zoning Plan Review 1 Site Plan Review Date: I APPROVED C] APPROVED WITH REVISIONS (see notes) O DENIED Staff: o \ co \\> F 1 F ,vvv X6'0 o 469; 0R 0- PORCH , SS • \ 9-13 \ 1 M EXISTING ao \\\ HOUSE \ 1 #1350 O a5 ?s 5.0 12 PATIO PROPOSED DRAINAGE-: \CP UTILITY EASEMENT 12 75' \ SETBACK 965.6) * LLQ' -- j<\ 5 U1;L!TY EASEMENTi PER DOC. NO. 392530 960.1) SU 1 `p 0 1 WOOD RETAINING WOOD / WALLS i IR`ETAIiN(NG MANHOLE }-_-- \ j 929.4 CONTOUR LINE 908.3) : denotes existing spot elevation, mean sea level datum 917---- : denotes existing contour line, mean sea level datum Bearings shown are based upon an assumed datum. NOTE: MEASUREMENTS ON HOUSE ARE TO THE FOUNDATION. This survey shows the boundaries of the above described property, and the location of an existing house, driveway, "hardcover" and elevations thereon. It does not purport to show any other improvements or encroachments. LAKE MINNETONKA WEST ARM RECEIVED SEP -22011 CITY OF ORONO DESIGNEDREVISION DATE DESCRIPTION G RO N B E RG AND ASSOCIATES, INC. t_laws CONSULTING ENGINEERS, LAND SURVEYORS, & SITE PLANNERS 445 NORTH WILLOW DRIVE LONG LAKE, MN. 55356 952-473-4141 I hereby certify that this survey was prepared by me, or under my direct supervision, and that I am a duly registered Civil Engineer and Land Surveyor under the of the State of Minnesota. Mark S. Gronberg Minnesota Licen Number 12755 SCALE 1"=20' DATE 7-21-08 DRAWN PRJ JOB N0. 11-245 CHECKED 11-245 Deck Planner Software™ Report Page 1 www.strongtie.com Copyright © 2013-2022 Simpson Strong-Tie Company Inc. All rights reserved. Johnson Debbie Deck Planner Software™ Report 3D view All lengths, areas, weights, masses and structural forces are expressed in U.S. Customary units unless otherwise specified. This report was created 6/22/2022 11:46 AM by Deck Planner Software™ Deck Planner Software™ Report Page 1 www.strongtie.com Copyright © 2013-2022 Simpson Strong-Tie Company Inc. All rights reserved. Johnson Debbie Lower Deck Deck Planner Software™ Report 3D view All lengths, areas, weights, masses and structural forces are expressed in U.S. Customary units unless otherwise specified. This report was created 6/22/2022 12:03 PM by Deck Planner Software™ Deck Planner Software™ Report Page 1 www.strongtie.com Copyright © 2013-2022 Simpson Strong-Tie Company Inc. All rights reserved. Johnson Debbie 3 Deck Planner Software™ Report 3D view All lengths, areas, weights, masses and structural forces are expressed in U.S. Customary units unless otherwise specified. This report was created 6/22/2022 11:35 AM by Deck Planner Software™ Deck Planner Software™ Report Page 1 www.strongtie.com Copyright © 2013-2022 Simpson Strong-Tie Company Inc. All rights reserved. Johnson Debbie Upper Deck Deck Planner Software™ Report 3D view All lengths, areas, weights, masses and structural forces are expressed in U.S. Customary units unless otherwise specified. This report was created 6/22/2022 11:57 AM by Deck Planner Software™ Deck Planner Software™ Report Page 1 www.strongtie.com Copyright © 2013-2022 Simpson Strong-Tie Company Inc. All rights reserved. Johnson Debbie 3 Deck Planner Software™ Report 3D view All lengths, areas, weights, masses and structural forces are expressed in U.S. Customary units unless otherwise specified. This report was created 6/22/2022 11:40 AM by Deck Planner Software™ June 9, 2022 (Revised June 16, 2022) Jared Smith Concept Landscaping PO Box 430 Mound, MN 55364 Submitted by email: JaredMound@aol.com RE: Segmental Retaining Wall Typical Sections Project Location: 1350 Rest Point Circle, Mound, Minnesota Project No. 22-6321 Dear Mr. Smith: This letter includes important details regarding the attached design typical engineered section for the segmental retaining walls at the above location. This design is based on information provided by you in during a site visit on June 2, 2022, including a description of the project and existing site survey and wall layout information. Revisions include changes to the plan view and wall cross-section designs. The attached typical section(s) should be referenced for construction details. Special note should be made of the wall embedment depth and the geosynthetic fabric (geogrid) length as measured from the front face of the wall, or of the no-fines concrete wall backfill material depths, as applicable. Where tree roots conflict with geogrid installation, geogrid lengths may be modified and cut to work around roots. No- fines concrete or double-stacked block walls may also be used as an alternative. Refer to Anchor Retaining Wall Systems Standard Specifications for installation information and details. The design of the wall system assumes the following: Wall location: Replacement of existing timber retaining walls (similar configuration) Wall height(s): 4.67-ft (maximum exposed heights, not including cap units) Minimum embedment depth = 6” min., or as noted Soil conditions: Silty/Clayey Sand, friction angle = 30.0 degrees, unit weight of 125.0 lb/ft3 Required minimum soil bearing capacity = 1500 psf Surcharge load at top of walls: None 2:1 maximum slope at top and bottom of walls Block Type: Anchor Diamond Pro Geosynthetic Fabric Type: Mirafi 3XT Drainage pipe: Required These walls have not been designed for ground water surcharge loads. Direct all surface and groundwater drainage away from the walls. Methods to do so include but are not limited to the following: drainage swale, site grading, retention ponds, etc. Details of water control are left to the wall contractor or the site civil engineer. Please contact Criterium-Schimnowski to provide additional site assessment services if desired. The wall design was performed using the design guidelines presented in the third edition of the “Design Manual for Segmental Retaining Walls” (DMSRW) published by NCMA in 2009. Additional information requested by Criterium-Schimnowski Engineers but not available includes: geotechnical site survey and 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 2 soil data. If soil conditions, proposed wall layouts, or other design parameters vary from that assumed, a revised analysis may be needed. Please call me if you have any questions or need more information. This design has been prepared in strict confidence with you as our client. Reliance upon our design by other parties is strictly prohibited. If you choose to share our design, you agree to indemnify, defend and hold harmless the Engineer from any third-party action. No reproduction or re-use is permitted without express written consent. Further, we will not release this design to anyone without your permission. Thank you. Sincerely, Paul Schimnowski, P.E. MN #40126 I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Paul Schimnowski, P.E. Date: June 16, 2022 License #: 40126 (MN) 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 3 Retaining Wall Completion Reports and Construction Inspections To: Retaining wall contractors and/or all clients utilizing our services for retaining wall engineering. From: Paul Schimnowski, PE Retaining Wall Engineer Criterium‐Schimnowski Engineers (CSE) Paul@CriteriumMN.com Date: April 1, 2022 To help contractors and other interested parties navigate the changes that many cities and jurisdictions are making regarding construction inspection requirements and final approval letters, we are making the following recommendations: 1. Request that the City Building Official complete the Required Inspections of Retaining Walls form, attached. 2. Notify your client of the potential for added cost depending on city/building official requirements. Contact our office or refer to our service agreement for current fees. 3. Contact Criterium‐Schimnowski Engineers to schedule any required inspections. Adequate lead time is required. Similar to typical City inspections, at least one week is recommended. We cannot guarantee immediate service. 4. Take daily construction progress photos for your records and for submittal to Criterium‐ Schimnowski Engineers upon request. 5. Complete the Statement of Conformance for your records and for submittal to Criterium‐ Schimnowski Engineers upon request. Form attached. If a Wall Completion Report (Post‐built Conformance Letter), is requested of CSE, we will require that you provide construction photos and Statement of Conformance. In addition, CSE will need to perform a site visit once final grading is completed. Without these three items, we are unable to comment on the construction/conformance of the wall. We are here to help as much as possible. These inspection requirements are not coming from us. Contact us if you have any questions. 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 4 Statement of Conformance (for Retaining Wall Contractor) Project Name/Address: _____________________________________ _____________________________________ _____________________________________ Form to be submitted with all construction progress photos by the retaining wall contractor at time of wall completion. This form is required in order to request a wall completion letter from CSE: _____ Block type: _____________________________________________________________________ _____ Geogrid type: ___________________________________________________________________ _____ Description of site soils (i.e. sand, clay, loam): _________________________________________ _____ Leveling pad size and type of material: _______________________________________________ _____ Embedment depth (courses of block buried): _________________________________________ _____ Draintile type and diameter: _______________________________________________________ _____ Drainage aggregate type and layer thickness: _________________________________________ _____ Geogrid lengths and elevations: ____________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Compaction methods used: _______________________________________________________ I hereby certify that, to the best of my knowledge, the work is in conformance with the approved plans and specifications, manufacturer recommendations and requirements, and/or the applicable workmanship provisions of the code. ______________________________________________ Date ____________________________ Signature of Person in Responsible Charge _____________________________________________________________________________________ Printed Name/Title/Company Submit completed form to: Melissa@CriteriumMN.com 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 5 Required Inspections of Retaining Walls (for City Building Official) Project Name/Address: _____________________________________ _____________________________________ Permit Number: _____________________________________ Please choose one of the following: _____ 1. No inspections are required. _____ 2. The city will perform all needed inspections. _____ 3. The retaining wall engineer‐of‐record must complete the following: _____ Final site visit with wall completion letter. Contractor’s Statement of Conformance is accepted in lieu of periodic site visits during construction. _____ Periodic site visits with a wall completion letter that includes documentation of the engineer’s construction observations. Number of inspections required by building official: ________________ ______________________________________________ Signature of Building Official or Authorizing Personnel _____________________________________________________________________________________ Printed Name/Phone Number ________________________________ Date 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 6 DESIGN PROVISIONS: 1. REFER TO WALL MANUFACTUER’S SPECIFICATIONS FOR SEGMENTAL RETAINING WALL UNITS AS THEY ARE INTEGRAL TO THESE PLANS. 2. SEE PRODUCT MANUFACTURER INSTALLATION RECOMMENDATIONS FOR CONSTRUCTION SEQUENCE AND INSTALLATION NOTES. 3. THE DESIGN OF THIS RETAINING WALL SYSTEM WAS BASED UPON THE EFFECTIVE STRENGTH PARAMETERS SHOWN ON THE “SOIL VALUES” TABLE. UNLESS OTHEWISE NOTED, NO FORMAL SOIL INFORMATION WAS PROVIDED BY THE OWNER OR OWNER’S REPRESENTATIVE. IF SOIL CONDITIONS VARY AT TIME OF CONSTRUCTION, WALL ENGINEER MUST BE CONTACTED TO DETERMINE IF A REVISED DESIGN IS NEEDED. 4. THE WALL DESIGN WAS BASED ON THE INFORMATION NOTED IN THE LETTER ABOVE. 5. NO PRODUCT/MATERIAL SUBSTITUTIONS WILL BE ALLOWED WITHOUT PRIOR WRITTEN PERMISSION OF CRITERIUM‐SCHIMNOWSKI ENGINEERS. 6. FINAL SITE GRADES AND ROOF DRAINS SHALL DIRECT CONCENTRATED RUNOFF AWAY FROM ANY RETAINING WALL(S). UNLESS OTHERWISE NOTED, THE WALL(S) HAS NOT BEEN DESIGNED FOR HYDROSTATIC SURCHARGE LOADING. 7. THE WALL DESIGN WAS PERFORMED USING DESIGN GUIDELINES PRESENTED IN THE THIRD EDITION OF THE "DESIGN MANUAL FOR SEGMENTAL RETAINING WALLS" PUBLISHED BY NCMA. DESIGN LIMITATIONS: 1. THE INFORMATION PROVIDED WITHIN THESE DOCUMENTS IS FOR THE STRUCTURAL DESIGN OF THE PROPOSED RETAINING WALL(S) ONLY. THE REQUIREMENTS FOR AND/OR WORK RELATED TO HANDRAILS, GUARDRAILS, OR OTHER LIFE/SAFETY ISSUES ARE EXCLUDED FROM THESE DOCUMENTS AND ARE TO BE PROVIDED BY OTHERS. 2. SITE LAYOUT AND GRADING DESIGN ARE NOT INCLUDED IN WALL DESIGN SERVICES. THOSE SERVICE ARE THE RESPONSIBILITY OF THE SITE CIVIL ENGINEER. 3. INTERNAL COMPOUND STABILITY (ICS) HAS BEEN CALCULATED FOR THIS PROJECT BY CRITERIUM. HOWEVER, ICS IS NOT A SUBSTITUTE FOR A GLOBAL STABILITY ANALYSIS WHICH SHOULD BE PERFORMED BY A QUALIFIED GEOTECHNICAL ENGINEER. ADDITIONAL SUBSURFACE EXPLORATION MAY BE REQUIRED. SUGGESTED QUALITY ASSURANCE REQUIREMENTS: 1. A QUALIFIED ENGINEER OR TECHNICIAN SHALL SUPERVISE THE WALL CONSTRUCTION TO VERIFY SITE SOIL CONDITIONS. IF THE PROJECT GEOTECHNICAL ENGINEER DOES NOT PERFORM THIS WORK, A QUALIFIED GEOTECHNICAL ENGINEER/TECHNICIAN SHALL BE HIRED TO ASSURE THE RETAINING WALL IS CONSTRUCTED WITH PROPER SOIL PARAMETERS. 2. A QUALIFIED GEOTECHNICAL ENGINEER SHALL BE CONSULTED TO VERIFY THE SUITABILITY OF DESIGN ASSUMPTIONS MADE BY CRITERIUM. 3. WALL EXCAVATION AND SOILS SHALL BE INSPECTED FOR GROUNDWATER CONDITIONS. THE GEOTECHNICAL ENGINEER SHALL DETERMINE ADDITIONAL DRAINAGE PROVISIONS TO BE INCORORATED INTO THE WALL DESIGN. 4. THE WALL DESIGN ENGINEER SHALL BE HIRED TO PERFORM A PRE‐CONSTRUCTION SITE VISIT. 5. THE WALL DESIGN ENGINEER CAN BE HIRED FOR CONSTRUCTION OBSERVATION SERVICES. 6. THE WALL CONTRACTOR IS RESPONSIBLE FOR MAINTAINING QUALITY CONTROL FOR THE CONSTRUCTION OF THE WALL IN ACCORDANCE WITH CONTRACT REQUIREMENTS. 7. SEE PROJECT CONTRACT DOCUMENTS FOR SPECIFIC DETAILS ON THE SCOPE OF WORK THAT WILL BE PROVIDED BY ALL PARTIES. 1350 Rest Point Circle, Mound, Minnesota June 9, 2022 (Rev. June 16, 2022) Page | 7 T E R M S A N D C O N D I T I O N S - Effective Nov.10.2020 This design is expressly made subject to the following terms and conditions to which all persons that receive and rely thereon agree: 1. STANDARD OF SERVICE: Services performed by ENGINEER under this agreement shall be performed in a manner consistent with the skill and care ordinarily used by members of the engineering profession practicing under similar conditions at the time and in the locality the services are performed. CLIENT recognizes that interpretations and recommendations of ENGINEER are based solely on the information available to the company. ENGINEER will be responsible for those interpretations and recommendations, but shall not be responsible for the interpretation by others of the information developed. Services provided reflect the professional judgment of ENGINEER, to the best of ENGINEER's knowledge, information, and belief as of the date hereof. No other warranty or guarantee, express or implied, is made. 2. SCOPE OF SERVICE: Services performed by ENGINEER are expressly limited by the scope of services ENGINEER has been employed by CLIENT to perform. 3. TERMS OF PAYMENT: ENGINEER may require a retainer fee to be paid before commencing any project. Extended engagements may require interim invoicing on a weekly, monthly, or other basis. At the completion of the project, we will issue a final invoice. Payment of each invoice is due upon presentation. Failure to pay invoices within the allotted time period will constitute a breach of contract and may result in suspension of work until such time as all overdue payments are made in full. Should any suspension occur because of overdue payments, the time for contract completion, if any is stated, shall be extended by the period of the suspension. Invoiced balances remaining unpaid for thirty (30) days after the date of invoice may be charged a finance charge in the amount of ½ percent per month from the date of invoice. If an invoice remains unpaid and it becomes necessary, in the ENGINEERS’ opinion to initiate collection procedures, the CLIENT hereby agrees to pay all collection costs including, but not limited to, reasonable fees for attorneys retained by ENGINEER and court costs at our standard billing rate for time necessitated in court appearances or presentation of claim to the appropriate court jurisdiction. Exceptions to payment terms must be specified in writing. 4. OWNERSHIP OF DOCUMENTS: All reports, field data, field notes, calculations, estimates and other documents (‘reports’) prepared by Engineer, as instruments of service, shall remain the property of Engineer. CLIENT agrees that all reports furnished to CLIENT or his agents, which are not paid for, will be returned upon demand and will not be used by CLIENT for any purpose whatever. ENGINEER will retain all pertinent records relating to the services performed for a period of five years following submission of the report, during which period the records will be made available to CLIENT at all reasonable times. 5. COPIES OF DOCUMENTS: ENGINEER agrees to furnish CLIENT with an electronic copy of our report, drawings, or documents relating to the services performed. Hard copies, bound or unbound, may be provided upon request at charge of cost plus 10 percent, at ENGINEERS’s sole discretion. ENGINEER shall retain an electronic copy of the final documents in its files for a period of five years. 6. INSURANCE: ENGINEER represents and warrants that it is protected by Workers Compensation insurance and has such coverage under Public Liability and Property Damage insurance policies which ENGINEER deems adequate. Certificate for all such policies of insurance shall be provided to the CLIENT upon request in writing. ENGINEER shall not be responsible for any loss, damage or liability arising from any acts by CLIENT, its agents, staff and other consultants employed by it. 7. TERMINATION: This agreement may be terminated by either party by written notice. In the event of termination, ENGINEER shall be paid for services performed and expenses incurred up to the termination notice date. Neither CLIENT not ENGINEER may delegate, assign, sublet or transfer his/her duties or interest in this Agreement without the written consent of the other party. 8. LIMITATION OF LIABILITY: To the fullest extent permitted by law, CLIENT and ENGINEER (a) waive against each other, and the other's employees, officers, directors, agents, insurers, partners, and consultants, any and all claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to this report, (b) agree that ENGINEER’s total liability to CLIENT shall be limited to the total amount of compensation received by ENGINEER, (c) agree that CLIENT will defend, indemnify, and hold harmless ENGINEER from and against any claims, liabilities, actions, demands, losses, damages, costs and expenses sustained by any third-party not granted reliance on ENGINEER’s reports and services, (d) agree that any action arising out of or related to the services provided must be brought to ENGINEER’S attention no later than two (2) years after the date of the services, and (e) if an action is brought against the ENGINEER and the ENGINEER prevails, ENGINEER shall be entitled to recover costs and expenses, including reasonable attorneys' fees and costs. 9. FORCE MAJEURE: The engineer shall not be responsible or liable for any failure or delay in the performance of its obligations under this contract arising out of or resulting from any cause or event beyond our control, such as war, strike, crime, epidemic/pandemic, regulations and/or restriction imposed by any government agency, or other event. MINUTES OF THE ORONO PLANNING COMMISSION Monday, July 18, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ PUBLIC HEARINGS 1. LA22-000034 CONCEPT LANDSCAPING, 1350 REST POINT CIRCLE REQUESTS VARIANCE FOR LAKEYARD SETBACKS TO REPLACE FAILING RETAINING WALLS AND THE LAKE ACCESS STAIR SYSTEM. (STAFF: MELANIE CURTIS) Jared Smith, Concept Landscaping, was present. City Planner Curtis gave a presentation on the item, stating the subject property has an existing, aging timber wall and stair system that is exhibiting signs of failure. The existing walls are tiered and support the hillside to the lake. The configuration of the walls allows for some lake access stairs and deck platforms. The bottom wall is located approximately 6 feet from the OHW (Ordinary High Water Line) and the repair will be located one foot in front of the wall creating an estimated 5 foot setback from the lake. In addition to the size of the block being used, there will be a batter which will further increase the footprint of the walls. The Applicant has provided an engineer design for the wall construction and plan to reconstruct all in-kind with the exception of the expansion due to the change in material. The Applicant has identified the failing retaining wall and protection of the hillside as practical difficulties supporting the requested variance. Additionally, they have provided supporting documentation regarding Practical Difficulties and should be asked for additional testimony regarding the application. Regarding practical difficulty, Staff finds the existing conditions of the retaining walls and the hillside are practical difficulties which support the variance request. The new retaining walls would support and protect the slope. Staff has not received any public comment on the application and recommends approval of the lake setback variance for the improvements as proposed and suggests additional screening of the walls to preserve the natural vegetative view from the lake where feasible. Jared Smith, 8994 Zanzibar Lane, Maple Grove, represents Concept Landscaping and is present to answer questions. Chair McCutcheon asked if the same material will be used. Mr. Smith replied the initial wall was timber and it is being replaced by a modular block wall. Chair McCutcheon opened the public hearing at 6:06 p.m. There were no public comments. Chair McCutcheon closed the public hearing at 6:06 p.m. The Commissioners discussed the item. Ressler noted they have seen these before and it is important to get control of this before it becomes a problem as it is very difficult to rebuild in that area after damage has been done. He is in support of the application as proposed. Ressler moved, Peterson seconded, to approve LA22-000034, 1350 Rest Point Circle Requests Variance as applied. VOTE: Ayes: 6, Nays 0. Date Application Received: 06/22/2022 Date Application Considered as Complete: 06/23/2022 60-Day Review Period Expires: 08/22/2022 To: Chair McCutcheon and Planning Commission Members Adam Edwards, City Administrator From: Melanie Curtis, Planner mcc Date: 18 July 2022 Subject: #LA22-000034, Concept Landscaping o/b/o Deborah Jordan, 1350 Rest Point Circle Variance Public Hearing Background The subject property has an existing, aging timber wall and stair system that is exhibiting signs of failure. They have provided an engineered report for the wall construction. They plan to reconstruct all of the walls, stairs, and decks in kind. Due to the change in wall materials from timber with an approximate footprint of 6-inches to a modular block material (Anchor Diamond Pro) which will have a slightly larger footprint approximate footprint of 11-inches, a setback variance is required. Practical Difficulties Analysis Applicant Submittal Information: The applicant has identified the failing retaining wall and protection of the hillside as practical difficulties supporting the requested variance. Additionally, they have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. Planning Staff Practical Difficulty Analysis: Regarding practical difficulty, Staff finds the existing conditions of the retaining walls and the hillside are practical difficulties which support the variance request. The new retaining walls would support and protect the slope. LOT ANALYSIS WORKSHEET Section 78-1279 – Setbacks: The existing retaining walls are tiered and support the hillside of the property. The configuration allows for the existing lake access stairs with deck platforms. The bottom wall is located approximately 6 feet from the OHWL. The proposed retaining wall repair will be located one foot in front of the existing wall creating an estimated 5 foot setback from the lake. In addition to the size of the block being used, there will be a batter which will further increase the footprint of the walls. The batter of a wall is the angle of the front face of the wall as compared Application Summary: The applicant is requesting approval of lake setback variances in order to reconstruct a retaining wall and stair system in the lake yard with different wall materials. Staff Recommendation: Planning Department Staff recommends approval. FILE #LA22-000034 18 July 2022 Page 2 of 4 to a vertical straight line starting at the toe of the slope. Walls that are straight faced (i.e. have no batter or setback), cannot be built as high as walls that have a batter. Based on the wall design specifications, the installation will include batter of a 1 inch setback for each wall course. No retaining walls are permitted within the 75 foot lakeshore setback. Section 78-1680 and 78-1700 – Hardcover Calculations: Retaining walls are exempt from hardcover totals for the property. Retaining walls are excluded from the hardcover calculations. Applicable Regulations: Lake Setback Variance (Section 78-1279) Retaining walls are not permitted within 75’ of the lake, in order to replace the existing wall system, with a slightly expanded footprint a setback variance has been requested. Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. §216C.06, subd. 14, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. Preserving and protecting the existing lake yard slope is in harmony with the intent of the ordinance. The proposed retaining walls will be screened with vegetation to maintain the rural nature of the lake wherever feasible. 2. The variance is consistent with the comprehensive plan. The proposed retaining walls will continue to maintain the integrity of the slope and protect the slope from catastrophic failure which protects the lake. The proposal is consistent with the comprehensive plan. 3. The applicant establishes that there are practical difficulties. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; The owner proposes to install retaining wall improvements which are residential in nature and reasonable from a residential scope. b. There are circumstances unique to the property not created by the landowner; The owner has proposed retaining walls to protect against failure of the slope. FILE #LA22-000034 18 July 2022 Page 3 of 4 The existing slope of the lake yard was not the result of actions by the owner; and c. The variance will not alter the essential character of the locality. There are existing retaining walls in the lake yard. The variance to permit the expanded retaining wall structure within the 75-foot lake setback will help to maintain the existing slope and character of the area. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 4. Economic considerations alone do not constitute practical difficulties. Economic considerations have not been a factor in the variance approval determination. 5. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 17, when in harmony with Orono City Code Chapter 78. This condition is not applicable. 6. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located. This condition is not applicable, as residential improvements are permitted to support a residential use in the LR-1B District. 7. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The slope of the property combined with the pre-existing improvements are unique conditions affecting the subject property. 9. The conditions do not apply generally to other land or structures in the district in which the land is located. The steep slope, existing timber wall configuration, and the existing improvements create conditions which do not apply to all of the adjacent properties. 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. Granting a lake setback variance to allow the retaining walls within the 75-foot lake setback to be reconstructed with an expanded footprint is reasonable, is a better solution long-term, and is necessary to preserve the rights of the owner. The variance is supported by the vulnerable slope on the property. 11. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. Granting the lake yard setback variance allowing the retaining walls within the 75-foot lake setback will not adversely impact health, safety, comfort or morals, or in any way be contrary to the ordinances. 12. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The proposed walls within the lake yard will continue to preserve the integrity of the slope and there is no conforming location to install the retaining walls which would protect the slope. Preserving the existing wall is necessary for the protection of the slope and the lake. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. FILE #LA22-000034 18 July 2022 Page 4 of 4 Engineer Comments The applicant provided a plan designed by a licensed engineer, Paul Schimnowski, for stabilizing the slope using an Anchor Diamond Pro block system. A building permit is required to install the walls and improvements to be reconstructed. The City Engineer and Building Official will review the engineered wall plans at the time of the building permit review. Public Comments To date, no public comments have been received. Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance(s), if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions in order to mitigate the impacts created by the granting of the requested variance(s)? 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Planning Staff recommends approval of the lake setback variance for the improvements as proposed. Staff further recommends additional screening of the walls be implemented to preserve the natural vegetated view from the lake where feasible. List of Exhibits Exhibit A. Application Exhibit B. Practical Difficulties Documentation Form Exhibit C. Existing Survey Exhibit D. Engineered Plans Exhibit E. Plans Exhibit F. Submitted Hardcover Calculations Exhibit G. Photos Exhibit H. Property Owners List Exhibit I. Plat Map AGENDA ITEM Prepared By: L. Oakden Reviewed By: Approved By 1.Purpose. The applicant is requesting a variance to construct new retaining walls with minor footprint expansions within the lakeyard setback. 2.Background. The property has existing timber retaining walls that are failing. Pursuant to City Code 78-1726(6), an emergency slope repair request was approved by the City Council on June 27, 2022 to address the wall failure (Resolution 7273, Exhibit C). The applicant has proposed to construct new retaining walls directly in front of the existing walls to create the required support for the existing slope. The repair creates new footprint expansion within the 75’ lakeyard. 3.15.99 Deadline. The applicant made a complete application on June 22, 2022. The 60-Day review period ends on August 21, 2022 4.Planning Commission Vote and Comment. The planning commission held a public hearing on July 18, 2022. The Commissioners discussed the challenges with the slope of the lot and engineer’s report of the failing walls. The Commission voted 6 to 0 to approve the variance request. 5.Public Comment. No public comments were received. 6.Staff Recommendation. Staff recommends approval of the proposed variance. COUNCIL ACTION REQUESTED Motion to approve the included draft resolution Exhibits A.Draft Resolution B.Proposed Plans C.Resolution 7273, Emergency Slope Failure D.PC minutes E.PC Staff Report References PC Exhibits A.Application B.Practical Difficulties Documentation Form C.Resolution 7273 Emergency Slope Repair D.Proposed Site Plan And Engineered Drawing E.Engineer Letter F.Neighbor’s Permission for Work G.Property Owners List and Map Item No.: 10 Date: August 8, 2022 Item Description: LA22-000038 – Dennis Walsh, 1354 Rest Point Circle, Variance, Resolution Presenter: Laura Oakden Interim Community Development Director Agenda Section: Community Development Report CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7280 1 A RESOLUTION APPROVING A VARIANCE FROM MUNICIPAL ZONING CODE SECTION 78-1279 FILE NO. LA22 -000038 WHEREAS, on June 22, 2022, Dennis Walsh (“Applicant”), applied for a variance from the City Code for the property addressed 1354 Rest Point Circle and legally described as: Lot 13, Rest Point Park and Lot 11, Subdivision of lot 14, Rest Point Park Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicant has made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-1279 to allow construction of replacement retaining walls with an increased footprint in the lake yard; and WHEREAS, on July 18, 2022, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on July 18, 2022, the Planning Commission recommended approval of the variance; and WHEREAS, on August 8, 2022, the City Council reviewed the application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variance as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: 1. This application was reviewed as Zoning File #LA22-000038. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1B Zoning District. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7280 2 3. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 4. Applicant has applied for the following variance: a. Lake Setback Variance 5. In considering this application for variance, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” Preserving and protecting the existing lake yard slope is in harmony with the intent of the ordinance. The proposed retaining walls will be screened with vegetation to maintain the rural nature of the lake wherever feasible. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The proposed retaining walls will continue to maintain the integrity of the slope and protect the slope from catastrophic failure which protects the lake. The proposal is consistent with the comprehensive plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The owner proposes to install retaining wall improvements which are residential in nature and reasonable from a residential scope. b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The owner has proposed retaining walls to protect against failure of the slope. The existing slope of the lake yard was not the result of actions by the owner; c. The variance, if granted, will not alter the essential character of the locality.” CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7280 3 There are existing retaining walls in the lake yard. The variance to permit the expanded retaining wall structure within the 75-foot lake setback will help to maintain the existing slope and character of the area. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as residential improvements are permitted to support a residential use in the LR-1B District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The slope of the Property combined with the pre-existing improvements are unique conditions affecting the Property. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The Property’s slope instability combined with the existing improvements create conditions which do not apply to adjacent properties. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” Granting a lake setback variance to allow the retaining walls within the 75-foot lake setback to be reconstructed with an expanded footprint is reasonable, is a better solution long-term, and is necessary to preserve the rights of the owner. The variance is supported by the vulnerable slope on the Property. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting the lake yard setback variance allowing the retaining walls within the 75-foot lake setback will not adversely impact health, safety, comfort or morals, or in any way be contrary to the ordinances. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7280 4 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The proposed wall repairs within the lake yard will preserve the integrity of the slope and there are no conforming locations for the retaining walls which would protect the slope. Preserving the existing wall is necessary for the protection of the slope and the lake. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section 78-1279 to allow construction of replacement retaining walls within the lake yard, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the survey and building plans submitted by the Applicant and annotated by City staff, attached to this Resolution as Exhibits A. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Applicant, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A building permit must be obtained within one year of the date of Council approval, or the variance will expire on that date (August 8, 2023). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 8th day of August, 2022. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7273 1 A RESOLUTION APPROVING AN EMERGENCY SLOPE REPAIR PURSUANT TO MUNICIPAL ZONING CODE SECTION 78-1726 WHEREAS, on June 9, 2022, Dennis Walsh (hereinafter the “Applicant”), pursuant to City Code 78-1726, applied for authorization to proceed with an emergency repair to the lake slope on his property addressed 1354 Rest Point Circle and legally described as: Lot 11, Subdivision of Lot 14 Rest Point Park, Lake Minnetonka and Lot 13 Subdivision of Rest Point Park, Lake Minnetonka, Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicant submitted documentation from a licensed professional engineer which indicates the failure of the current lake yard slope on the Property and the existing retaining walls is imminent; and WHEREAS, the Applicant has made a request to the City of Orono for an emergency slope repair pursuant to Orono Municipal Zoning Code Section 78-1726; and WHEREAS, on June 9, 2022, a corrective restoration plan was provided by the Applicant’s licensed professional engineer to correct and reinforce the existing failing retaining walls; and WHEREAS, the engineered plans proposed an expansion of the existing retaining wall footprint within the 75’ setback from the ordinary high water level (hereinafter the “OHWL”) of Lake Minnetonka where no walls are permitted and existing walls are failing; and WHEREAS, due to their proximity to the OHWL the new, reinforcement retaining walls will require a setback variance from City Code section 78-1279; and WHEREAS, on June 27, 2022, the City Council reviewed the request, the engineered plans, and the recommendations of the City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested emergency slope repair including new engineered retaining walls as described above based on one or more of the following findings of fact concerning the Property: CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7273 2 FINDINGS OF FACT: 1. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1B Zoning District. 3. The Property contains 0.71 acres in area and has a defined lot width of 125 feet. 4. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 5. The Property contains existing timber walls within the lake yard 75-feet from the OHWL which have been determined to be under imminent threat of failure confirmed by a licensed professional engineer. 6. The Applicant has requested consideration for an emergency slope repair pursuant to City Code Section 78-1726. Engineered plans were provided which demonstrate the proposed corrective action. 7. Retaining walls are not permitted within 75-feet of the OHWL; installation of new walls require City Council approval of a lake setback variance. 8. In considering this application for emergency slope repair, the Council has considered the advice and recommendation of the City Staff and the effect of the proposed emergency slope repair upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants approval to proceed with an emergency slope repair pursuant to Orono Municipal Zoning Code Section 78-1726 to allow the repair of the existing retaining walls including installation of new retaining walls according to the approved plan, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7273 3 2. The approved emergency slope repair shall conform to the submitted plans (hereinafter the “Plans”) submitted by the Applicant and annotated by City staff, attached to this Resolution as Exhibit A. 3. Any amendments to the emergency slope repair which are not in conformity with City codes may require further Planning Commission and City Council review. 4. A building permit must be issued before work can commence on the emergency slope repair. 5. The Applicant shall apply for and receive an after-the-fact variance from City Code 78- 1279 prior to finalization of the building permit for installation of the walls. 6. Authorities granted by this resolution run with the Property not with the Applicant, but are permissive only and must be exercised by obtaining a variance and building permit for the Plans. A building permit must be applied for within 60 days of the date of Council approval, or the action will expire after August 26, 2022. 7. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 27th day of June, 2022. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Aaron Printup, Acting Mayor Date Application Received: June 22, 2022 Date Application Considered as Complete: June 22, 2022 60-Day Review Period Expires: August 21, 2022 To: Chair McCutcheon and Planning Commission Members Adam Edwards, City Administrator From: Laura Oakden, Interim Community Development Director Date: July 18, 2022 Subject: #LA22-000038, Dennis Walsh, 1354 Rest Point Circle, Variance, Public Hearing Background The property has an existing timber retaining wall that is failing. Pursuant to City Code 78- 1726(6), an emergency slope repair request was approved at the City Council on June 27, 2022 to address the wall failure (Resolution 7273, Exhibit C). The applicant has proposed to construct a new retaining wall directly in front of the existing wall to create the required support for the existing slope. The repair creates a new footprint expansion within the 75’ lakeyard. The applicant’s engineer provided drawings and an analysis stating the slope failure is imminent without the proposed project. The applicant has applied for a building permit to construct the wall. The project is shown to cross over the property boundary onto 1366 Rest Point Circle. The owners of 1366 Rest Point Circle have provided an email of approval for the work to be completed within their property, Exhibit F. Practical Difficulties Analysis Applicant Submittal Information: The applicant has identified the failing retaining wall and protection of the hill side as practical difficulties supporting the requested variance. Additionally, they have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. Planning Staff Practical Difficulty Analysis: Regarding practical difficulty, Staff finds the existing conditions of the retaining walls and the hillside are practical difficulties which support the variance request. The new retaining walls would support and protect the slope. Staff would recommend additional screening of the walls to preserve the natural vegetated view from the lake. LOT ANALYSIS WORKSHEET Section 78-1279 – Setbacks: The existing retaining walls are tiered down the slope to create stair access and support the hillside of the property. The bottom wall is located approximately 6 feet from the OHWL. The proposed retaining wall repair will be located one foot in front of the existing wall creating an estimated 5 foot setback from the lake. No retaining walls are permitted within the 75 foot Application Summary: The applicant is requesting a variance to construct a new retaining wall with minor footprint expansions within the lakeyard setback. Staff Recommendation: Planning Department Staff recommends approval. LA22-000038 July 18, 2022 Page 2 of 4 lakeshore setback. Section 78-1680 – Hardcover Calculations: Retaining walls are exempt from hardcover totals for the property. Retaining walls are excluded from the hardcover calculations. Applicable Regulations: Lake Setback Variance (Section 78-1279) Retaining walls are not permitted within 75’ of the lake, therefore the applicant is requesting a setback variance. The applicant’s plan involves adding a new timber wall directing abutting the existing wall to create the additional support required to preserve and protect the hillside. Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. §216C.06, subd. 14, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. Preserving and protecting the existing slope in the lake yard is in harmony with the intent of the ordinance. The proposed retaining walls will be screened with vegetation to maintain the rural nature of the lake. 2. The variance is consistent with the comprehensive plan. The proposed retaining walls will help to maintain the integrity of the slope and protecting the slope from catastrophic failure. The proposal is consistent with the comprehensive plan. 3. The applicant establishes that there are practical difficulties. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; The owner proposes to install retaining wall improvements which are residential in nature and reasonable from a residential scope. b. There are circumstances unique to the property not created by the landowner; The owner has proposed retaining walls to protect against failure of the slope. The existing slope of the lake yard was not the result of actions by the owner; and c. The variance will not alter the essential character of the locality. There are existing retaining walls in the lake yard slope area. The variance to permit LA22-000038 July 18, 2022 Page 3 of 4 additional retaining wall structure within the 75-foot lake setback will help to maintain the existing slope and character of the area. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 4. Economic considerations alone do not constitute practical difficulties. Economic considerations have not been a factor in the variance approval determination. 5. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 17, when in harmony with Orono City Code Chapter 78. This condition is not applicable. 6. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located. This condition is not applicable, as residential improvements are permitted to support a residential use in the LR-1B District. 7. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The slope of the property combined with the pre-existing improvements are unique conditions affecting the subject property. 9. The conditions do not apply generally to other land or structures in the district in which the land is located. The property’s slope instability combined with the existing improvements create conditions which do not apply to adjacent properties. 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. Granting a lake setback variance to allow the retaining walls within the 75-foot lake setback is reasonable and necessary to preserve the property rights of the owner and supported by the vulnerable lake yard slope on the property. 11. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. Granting the lakeyard setback variance allowing the retaining walls within the 75-foot lake setback will not adversely impact health, safety, comfort or morals, or in any way be contrary to the ordinances. 12. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The proposed wall repairs within the the lakeyard will preserve the integrity of the slope and there are no conforming locations for the retaining walls which would protect the slope. Preserving the existing wall is necessary for the protection of the slope and the lake. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. Engineer Comments: a. This Application: The applicant has provided a letter from a licensed engineer, Ronald Vickery, with the assessment that a slope failure is imminent. Further the same engineer has provided a plan for stabilizing the slope using retaining wall in front of the failing existing walls and installing soil anchors. I believe the proposed fix does address the potential slope failure. In LA22-000038 July 18, 2022 Page 4 of 4 this particular instance the proposed emergency repair appears to also be the proposed permanent repair. Therefore my recommendation for council to authorize the emergency repair in a timely manner but is not a recommendation to forgo the normal requirements associated with improvements in the lakeyard / 75foot setback for the permanent structure which should still follow. Public Comments To date, no public comments have been received. Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance (s), if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions in order to mitigate the impacts created by the granting of the requested variance(s)? 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Planning Staff recommends approval of the requested variance. List of Exhibits Exhibit A. Application Exhibit B. Practical Difficulties Documentation Form Exhibit C. Resolution 7273 Emergency Slope Repair Exhibit D. Proposed Site Plan And Engineered Drawing Exhibit E. Engineer Letter Exhibit F. Neighbor’s Permission for Work Exhibit G. Property Owners List and Map MINUTES OF THE ORONO PLANNING COMMISSION Monday, July 18, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ 3. LA22-000038 DENNIS WALSH, 1354 REST POINT CIRCLE, REQUESTS VARIANCE FOR LAKEYARD SETBACKS TO REPLACE FAILING RETAINING WALLS AND THE LAKE ACCESS STAIR SYSTEM. (STAFF: LAURA OAKDEN) Denny Walsh, Applicant, was present. City Planner Oakden gave a presentation on the item, noting the Applicant has requested a variance to construct a new retaining wall with a minor footprint expansion within the lakeyard setback. The property has an existing timber retaining wall which has been deemed as failing. Pursuant to City Code 78- 1726(6), an emergency slope repair request was approved at the City Council on June 27, 2022 as the Applicant and an engineer showed that failure of the wall was an imminent threat to the slope. The Applicant has proposed to construct a new retaining wall directly in front of the existing retaining wall which is one foot wide and directionally bore anchors through the existing wall to hold it in place. The existing wall will stay in place with a new wall built directly in front of it. The repair creates a new footprint expansion within the 75 foot lakeyard. The engineer provided drawings and an analysis stating a slope failure is imminent without this proposed project. The Applicant was issued a building permit on July 7 and the project is shown to cross the property boundary onto 1366 Rest Point Circle; the owners of 1366 Rest Point Circle provided an email stating approval for the work that crosses the property boundary. Staff finds the existing condition of the retaining wall, the hill, and the slope with imminent failure are practical difficulties which support this variance request. Staff would like to hear comment on screening of those walls to protect the natural vegetative view if possible. Denny Walsh, 1354 Rest Point Circle, noted the retaining wall is 6-7 feet tall and 12 feet wide that is 40- 50 year old timbers that are failing. The hill has shifted so the wall looks “pregnant” and they cannot take it down or the hill will fall down. Therefore they must build a wall in front of the wall infilled with sand, rock, and anchors to keep the hill intact. Chair McCutcheon opened the public hearing at 6:39 p.m. There were no public comments. Chair McCutcheon closed the public hearing at 6:39 p.m. The Commissioners discussed the item. Libby noted he is not a structural engineer but is very familiar with this methodology of reinforcing walls. He has had clients with similar circumstances on Eagle Bluff and this method is very practical and minimizes the movement or potential encroachment into the lakeshore. He is in favor of this application. Kirchner is also in favor, noting one is allowed to maintain a wall that is existing an in place. He thinks it is incumbent for the Commissioners to note that 40 years later engineering and technology has evolved and changed and this is, in a way, maintenance of the wall that is there. He does not think it is egregious in any way. Chair McCutcheon agrees, with the wall bowing already it needs to be done and this seems to be a conservative approach. MINUTES OF THE ORONO PLANNING COMMISSION Monday, July 18, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Ressler noted once the lakeshore is gone one cannot put it back. It is best to get ahead of it. He is in support of the application. Libby moved, Erickson seconded, to approve LA22-000038, 1354 Rest Point Circle Variance. VOTE: Ayes: 6, Nays 0. AGENDA ITEM Prepared By: mcc Reviewed By: L. Oakden Approved By: 1. Purpose. This application is regarding lot area, lot width, and hardcover variances supporting construction of a new home. 2. MN§15.99 Application Deadline. The application was received and considered to be complete on June 22. Therefore the 60-Day review period expires on August 21, 2022. 3. Background/ Summary. The applicant’s original submittal was revised prior to the Planning Commission meeting in an attempt to address some of the issues called out by staff in the planning report. The revised plans (Exhibit B) reflect a footprint reduction to a conforming level, elimination of a side setback variance, and a lower hardcover level than originally proposed. The revised plans were reviewed at the July 18th Planning Commission meeting. According to the revised plans they continue to request a hardcover variance to permit 29.2% hardcover where 25% is permitted and 32.1% currently exists (the original request plans reflected 30.8% hardcover). Lot area and lot width variances are necessary due to the request for the hardcover variance based on to the property’s substandard size. The revised plan reflects a 214 square foot reduction in hardcover. 4. Planning Commission Vote and Comment. On July 18th, the Planning Commission held a public hearing. Following the public hearing the Planning Commission voted 4 in favor and 2 opposed to a motion to approve the variances according to the revised plans. The dissenting Commissioners felt that the redevelopment should be conforming. 5. Public Comment. Comments from the neighbors were received and are attached as Exhibit D. 6. Staff Recommendation. Staff recommends approval. COUNCIL ACTION REQUESTED Motion to adopt Resolution No. 7281. Exhibits A. Draft Resolution No. 7281 B. Proposed Plans - Revised C. Draft PC Minutes D. Neighbor Comments E. PC Staff Report 07/18/2022 References PC Exhibits 07/18/2022 A. Application & Neighborhood letter B. Narrative and Practical Difficulties Form C. Existing Conditions Survey D. Proposed Survey Item No.: 11 Date: August 8, 2022 Item Description: LA22-000035 - Alexander Design Group o/b/o Atrion & Lisa Faiola, 2659 Casco Point Road, Variances – Resolution No. 7281 Presenter: Melanie Curtis Planner Agenda Section: Community Development Report AGENDA ITEM Prepared By: mcc Reviewed By: L. Oakden Approved By: E. Proposed Plans – House and Boathouse F. Proposed Renderings & Landscape Plan G. Hardcover Calculations (Staff Edit) H. Aerial Photos I. Property Owners List J. Plat Map CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7281 1 A RESOLUTION APPROVING VARIANCES FROM MUNICIPAL ZONING CODE SECTIONS 78-350 AND 78-1700 FILE NO. LA22 -000035 WHEREAS, on June 22, 2022, Atrion Faiola and Lisa Faiola, a married couple, (hereinafter the “Applicant[s]”), applied for variances from the City Code for the property addressed 2659 Casco Point Road and legally described as: Lot 137, Spring Park, Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicants have made application to the City of Orono for variances to Orono Municipal Zoning Code Section 78-350 to allow redevelopment of a lot with substandard area and width; and WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-1403 to permit 21.6% structural coverage where 20% is the maximum allowed; and WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-1700 to permit 30.8% hardcover where 25% is permitted; and WHEREAS, the Applicants revised their plans upon reviewing the staff recommendations in the planning report. The revised plans were presented to the Planning Commission at their meeting on July 18, 2022; and WHEREAS, the Applicants’ revised plans reflect a variance to the Orono Municipal Zoning Code Section 78-1700 to permit 29.2% hardcover where 25% is permitted; and WHEREAS, the Applicants’ revised plans eliminate the need for the structural coverage variance from Orono Municipal Zoning Code Section 78-1403; and WHEREAS, on July 18, 2022, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7281 2 WHEREAS, on July 18, 2022, the Planning Commission recommended approval of the variance with a 4 – 2 vote based on the revised plans; and WHEREAS, on August 8, 2022, the City Council reviewed the revised application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variances based on the revised plans as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: 1. This application was reviewed as Zoning File #LA22-000035. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1C Zoning District. 3. The Property contains 0.29 acres in area and has a defined lot width of 60 feet. 4. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 5. Applicant has applied for the following variance[s]: a. Lot Area Variance b. Lot Width Variance c. Hardcover Variance 6. In considering this application for variances, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” The proposed lot area and width variances are in harmony with the purpose of the Ordinance. The substandard lot has difficulties in its CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7281 3 small size and depth, and proximity to the lake impacting redevelopment. The variance for 29.2% hardcover is in harmony with the purpose of the Ordinance. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The variances proposed to develop this nonconforming lot of record are consistent with the comprehensive plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The request to permit construction of the home on the substandard lot is reasonable. The type and level of variances requested for development of the property and are reasonable b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The substandard lot size is an existing condition and there is no available land with which to make the Property conforming. There should be consideration for variance approvals from the lot width and area requirements. The house footprint is conforming at 20% and the hardcover level requested will support a driveway to keep vehicle parking off the street; c. The variance, if granted, will not alter the essential character of the locality.” The variances are requested in order to permit construction of a home, which is reasonable. However the size and scale of the proposed development on this property would be out of character with the neighborhood. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7281 4 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as a residential home is an allowed use in the LR-1C District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The Property’s substandard size creates difficulties which also apply to many of the properties in the same neighborhood. The proposed structural and hardcover levels are scaled for the size of the property and as proposed are not out of character. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The Property’s substandard size creates difficulties which also apply to many of the properties in the same neighborhood. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” Granting lot area and lot width variances are necessary for the preservation of the property right of the Owners. The Owners have indicated the requested hardcover variance is a property right. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting the variances in this unique situation will not adversely impact health, safety, comfort, or morals; nor will it be not contrary to the intent of the zoning chapter. 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The narrowness and substandard size of the Property create practical difficulties affecting the Property. The variances for lot area, lot width are necessary, and do not merely serve as a convenience to the Owners. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section78-350 to allow redevelopment of a lot with substandard area and width; and a variance to Section 78-1700 to permit 29.2% hardcover where 25% is permitted, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. 7281 5 2. The approved project shall conform to the survey dated June 15, 2022 and revised on July 18, 2022; and the building plans dated July 18, 2022 submitted by the Applicants and annotated by City staff, attached to this Resolution as Exhibits A & B. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A building permit must be obtained within one year of the date of Council approval, or the variance will expire on that date (August 8, 2023). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 8th day of August, 2022. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor DW E L L I N G PR O P O S E D LE G A L D E S C R I P T I O N : Lo t 1 3 7 , S p r i n g P a r k , H e n n e p i n C o u n t y , M i n n e s o t a . SC O P E O F W O R K & L I M I T A T I O N S : 1. S h o w i n g t h e l e n g t h a n d d i r e c t i o n o f b o u n d a r y l i n e s o f t h e l e g a l d e s c r i p t i o n l i s t e d a b o v e . Th e s c o p e o f o u r s e r v i c e s d o e s n o t i n c l u d e d e t e r m i n i n g w h a t y o u o w n , w h i c h i s a l e g a l ma t t e r . P l e a s e c h e c k t h e l e g a l d e s c r i p t i o n w i t h y o u r r e c o r d s o r c o n s u l t w i t h c o m p e t e n t le g a l c o u n s e l , i f n e c e s s a r y , t o m a k e s u r e t h a t i t i s c o r r e c t a n d t h a t a n y m a t t e r s o f r e c o r d , su c h a s e a s e m e n t s , t h a t y o u w i s h t o b e i n c l u d e d o n t h e s u r v e y h a v e b e e n s h o w n . 2. S h o w i n g t h e l o c a t i o n o f o b s e r v e d e x i s t i n g i m p r o v e m e n t s w e d e e m n e c e s s a r y f o r t h e su r v e y . 3. S e t t i n g s u r v e y m a r k e r s o r v e r i f y i n g e x i s t i n g s u r v e y m a r k e r s t o e s t a b l i s h t h e c o r n e r s o f th e p r o p e r t y . 4. E x i s t i n g b u i l d i n g d i m e n s i o n s a n d s e t b a c k s m e a s u r e d t o o u t s i d e o f s i d i n g o r s t u c c o . 5. S h o w i n g a n d t a b u l a t i n g i m p e r v i o u s s u r f a c e c o v e r a g e o f t h e l o t f o r y o u r r e v i e w a n d f o r th e r e v i e w o f s u c h g o v e r n m e n t a l a g e n c i e s t h a t m a y h a v e j u r i s d i c t i o n o v e r t h e s e re q u i r e m e n t s t o v e r i f y t h e y a r e c o r r e c t l y s h o w n b e f o r e p r o c e e d i n g w i t h c o n s t r u c t i o n . 6. S h o w i n g e l e v a t i o n s o n t h e s i t e a t s e l e c t e d l o c a t i o n s t o g i v e s o m e i n d i c a t i o n o f t h e to p o g r a p h y o f t h e s i t e . W e h a v e a l s o p r o v i d e d a b e n c h m a r k f o r y o u r u s e i n d e t e r m i n i n g el e v a t i o n s f o r c o n s t r u c t i o n o n t h i s s i t e . T h e e l e v a t i o n s s h o w n r e l a t e o n l y t o t h e be n c h m a r k p r o v i d e d o n t h i s s u r v e y . U s e t h a t b e n c h m a r k a n d c h e c k a t l e a s t o n e o t h e r fe a t u r e s h o w n o n t h e s u r v e y w h e n d e t e r m i n i n g o t h e r e l e v a t i o n s f o r u s e o n t h i s s i t e o r be f o r e b e g i n n i n g c o n s t r u c t i o n . 7. T h i s s u r v e y h a s b e e n c o m p l e t e d w i t h o u t t h e b e n e f i t o f a c u r r e n t t i t l e c o m m i t m e n t . T h e r e ma y b e e x i s t i n g e a s e m e n t s o r o t h e r e n c u m b r a n c e s t h a t w o u l d b e r e v e a l e d b y a c u r r e n t ti t l e c o m m i t m e n t . T h e r e f o r e , t h i s s u r v e y d o e s n o t p u r p o r t t o s h o w a n y e a s e m e n t s o r en c u m b r a n c e s o t h e r t h a n t h e o n e s s h o w n h e r e o n . 8. I t s h o u l d b e n o t e d t h a t t h i s s u r v e y w a s c o m p l e t e d w i t h s i g n i f i c a n t s n o w c o v e r a g e o n s i t e . We c a n n o t b e c e r t a i n t h a t a l l i t e m s w e r e o b s e r v e d a n d l o c a t e d d u r i n g t h e p r o c e s s o f co n d u c t i n g t h e s u r v e y d u e t o t h e s n o w c o v e r . I f t h i s u n c e r t a i n t y i s s o m e t h i n g y o u w o u l d li k e t o r e m o v e , p l e a s e e x p o s e a l l i m p r o v e m e n t s a n d w e c a n r e t u r n t o l o c a t e s a i d i t e m s , i f ne e d e d . ST A N D A R D S Y M B O L S & C O N V E N T I O N S : "●" D e n o t e s i r o n s u r v e y m a r k e r , f o u n d , u n l e s s o t h e r w i s e n o t e d . #4 3 5 0 3 LI C E N S E N O . Wa y n e W . P r e u h s DA T E S1 JU N E 1 5 , 2 0 2 2 Mi n n e t o n k a , M i n n e s o t a 5 5 3 4 5 Ph o n e ( 9 5 2 ) 4 7 4 - 7 9 6 4 17 9 1 7 H i g h w a y N o . 7 We b : w w w . a d v s u r . c o m A d v a n c e S u r v e y i n g & E n g i n e e r i n g , C o . A T R I O N F A I O L A 2 6 5 9 C A S C O P O I N T R D . CL I E N T / J O B A D D R E S S O R O N O , M N SH E E T T I T L E P R O P O S E D S U R V E Y SH E E T N O . SH E E T 1 O F 1 DW G O R I E N T A T I O N S C A L E 2 2 0 8 5 4 J R DR A W I N G N U M B E R 20 ' 10 ' 0 DE C E M B E R 2 2 , 2 0 2 1 DA T E S U R V E Y E D : JU N E 1 5 , 2 0 2 2 DA T E D R A F T E D : SH E E T S I Z E : 1 7 X 2 2 GR A D I N G & E R O S I O N C O N T R O L N O T E S : BE F O R E D E M O L I T I O N A N D G R A D I N G B E G I N x In s t a l l s i l t f e n c e / b i o r o l l a r o u n d t h e p e r i m e t e r o f t h e c o n s t r u c t i o n a r e a . x Se d i m e n t c o n t r o l m e a s u r e s m u s t r e m a i n i n p l a c e u n t i l f i n a l s t a b i l i z a t i o n ha s b e e n e s t a b l i s h e d a n d t h e n s h a l l b e r e m o v e d . S e d i m e n t c o n t r o l s m a y be r e m o v e d t o a c c o m m o d a t e s h o r t t e r m c o n s t r u c t i o n a c t i v i t y b u t m u s t be r e p l a c e d b e f o r e t h e n e x t r a i n . x A t e m p o r a r y r o c k c o n s t r u c t i o n e n t r a n c e s h a l l b e e s t a b l i s h e d a t e a c h ac c e s s p o i n t t o t h e s i t e a n d a 6 i n c h l a y e r o f 1 t o 2 i n c h r o c k e x t e n d i n g at l e a s t 5 0 f e e t f r o m t h e s t r e e t i n t o t h e s i t e a n d s h a l l b e u n d e r l a i n w i t h pe r m e a b l e g e o t e x t i l e f a b r i c . T h e e n t r a n c e s h a l l b e m a i n t a i n e d d u r i n g co n s t r u c t i o n b y t o p d r e s s i n g o r w a s h i n g t o p r e v e n t t r a c k i n g o r f l o w o f se d i m e n t s o n t o p u b l i c s t r e e t s , w a l k s o r a l l e y s . P o t e n t i a l e n t r a n c e s t h a t ar e n o t s o p r o t e c t e d s h a l l b e c l o s e d b y f e n c i n g t o p r e v e n t u n p r o t e c t e d ex i t f r o m t h e s i t e . x Co n t r a c t o r s h a l l i n s t a l l i n l e t p r o t e c t i o n o n a l l e x i s t i n g s t o r m s e w e r i n l e t s in a c c o r d a n c e w i t h t h e c i t y s t a n d a r d d e t a i l s . I n l e t p r o t e c t i o n s h a l l a l s o be p r o v i d e d o n a l l p r o p o s e d s t o r m s e w e r i n l e t s i m m e d i a t e l y f o l l o w i n g co n s t r u c t i o n o f t h e i n l e t . I n l e t p r o t e c t i o n m u s t b e i n s t a l l e d i n a m a n n e r th a t w i l l n o t i m p o u n d w a t e r f o r e x t e n d e d p e r i o d s o f t i m e o r i n a m a n n e r th a t p r e s e n t s a h a z a r d t o v e h i c u l a r o r p e d e s t r i a n t r a f f i c . DU R I N G C O N S T R U C T I O N : x Wh e n d i r t s t o c k p i l e s h a v e b e e n c r e a t e d , a d o u b l e r o w o f s i l t f e n c e s h a l l be p l a c e d t o p r e v e n t e s c a p e o f s e d i m e n t l a d e n r u n o f f a n d i f t h e p i l e s o r ot h e r d i s t u r b e d a r e a s a r e t o r e m a i n i n p l a c e f o r m o r e t h a n 1 4 d a y s , t h e y sh a l l b e s e e d e d w i t h M i n n e s o t a D e p a r t m e n t o f T r a n s p o r t a t i o n S e e d Mi x t u r e 2 2 - 1 1 1 a t 1 0 0 l b / a c r e f o l l o w e d b y c o v e r i n g w i t h s p r a y m u l c h . x A d u m p s t e r s h a l l b e p l a c e d o n t h e s i t e f o r p r o m p t d i s p o s a l o f co n s t r u c t i o n d e b r i s . T h e s e d u m p s t e r s s h a l l b e s e r v i c e d r e g u l a r l y t o pr e v e n t o v e r f l o w i n g a n d b l o w i n g o n t o a d j a c e n t p r o p e r t i e s . D i s p o s a l o f so l i d w a s t e s f r o m t h e s i t e s h a l l i n a c c o r d a n c e w i t h M i n n e s o t a P o l l u t i o n Co n t r o l A g e n c y r e q u i r e m e n t s . x A s e p a r a t e c o n t a i n e r s h a l l b e p l a c e d f o r d i s p o s a l o f h a z a r d o u s w a s t e . Ha z a r d o u s w a s t e s s h a l l b e d i s p o s e d o f i n a c c o r d a n c e w i t h M P C A re q u i r e m e n t s . x Co n c r e t e t r u c k w a s h o u t s h a l l b e i n t h e p l a s t i c l i n e d d i t c h a n d d i s p o s e o f wa s h i n g s a s s o l i d w a s t e . x Se d i m e n t c o n t r o l d e v i c e s s h a l l b e r e g u l a r l y i n s p e c t e d a n d a f t e r m a j o r ra i n f a l l e v e n t s a n d s h a l l b e c l e a n e d a n d r e p a i r e d a s n e c e s s a r y t o p r o v i d e do w n s t r e a m p r o t e c t i o n . x St r e e t s a n d o t h e r p u b l i c w a y s s h a l l b e i n s p e c t e d d a i l y a n d i f l i t t e r o r so i l s h a s b e e n d e p o s i t e d i t s h a l l p r o m p t l y b e r e m o v e d . x If n e c e s s a r y , v e h i c l e s , t h a t h a v e m u d o n t h e i r w h e e l s , s h a l l b e c l e a n e d be f o r e e x i t i n g t h e s i t e i n t h e r o c k e n t r a n c e a r e a s x Mo i s t u r e s h a l l b e a p p l i e d t o d i s t u r b e d a r e a s t o c o n t r o l d u s t a s n e e d e d . x Po r t a b l e t o i l e t f a c i l i t i e s s h a l l b e p l a c e d o n s i t e f o r u s e b y w o r k e r s a n d sh a l l b e p r o p e r l y m a i n t a i n e d . x If i t b e c o m e s n e c e s s a r y t o p u m p t h e e x c a v a t i o n d u r i n g c o n s t r u c t i o n , pu m p d i s c h a r g e s h a l l b e i n t o t h e s t o c k p i l e a r e a s s o t h a t t h e d o u b l e s i l t fe n c e a r o u n d t h e s e a r e a s c a n f i l t e r t h e w a t e r b e f o r e i t l e a v e s t h e s i t e . x Te m p o r a r y e r o s i o n c o n t r o l s h a l l b e i n s t a l l e d n o l a t e r t h a n 1 4 d a y s a f t e r th e s i t e i s f i r s t d i s t u r b e d a n d s h a l l c o n s i s t o f b r o a d c a s t s e e d i n g w i t h Mi n n e s o t a D e p a r t m e n t o f T r a n s p o r t a t i o n S e e d M i x t u r e 2 2 - 1 1 1 a t 1 0 0 lb / a c r e f o l l o w e d b y c o v e r i n g w i t h s p r a y m u l c h . x Er o s i o n c o n t r o l m e a s u r e s s h o w n o n t h e e r o s i o n c o n t r o l p l a n a r e t h e ab s o l u t e m i n i m u m . T h e c o n t r a c t o r s h a l l i n s t a l l t e m p o r a r y e a r t h d i k e s , se d i m e n t t r a p s o r b a s i n s a n d a d d i t i o n a l s i l t f e n c i n g a s d e e m e d n e c e s s a r y to c o n t r o l e r o s i o n . SI T E W O R K C O M P L E T I O N : x Wh e n f i n a l g r a d i n g h a s b e e n c o m p l e t e d b u t b e f o r e p l a c e m e n t o f s e e d o r so d a n “ a s b u i l t ” s u r v e y s h a l l b e d o n e p e r C i t y o f M i n n e t o n k a re q u i r e m e n t s t o i n s u r e t h a t g r a d i n g w a s p r o p e r l y d o n e . x Wh e n a n y r e m e d i a l g r a d i n g h a s b e e n c o m p l e t e d , s o d o r s e e d i n g s h a l l b e co m p l e t e d i n c l u d i n g a n y e r o s i o n c o n t r o l b l a n k e t s f o r s t e e p a r e a s . x Wh e n t u r f i s e s t a b l i s h e d , s i l t f e n c e a n d i n l e t p r o t e c t i o n a n d o t h e r e r o s i o n co n t r o l d e v i c e s s h a l l b e d i s p o s e d o f a n d a d j a c e n t s t r e e t s , a l l e y s a n d wa l k s s h a l l b e c l e a n e d a s n e e d e d t o d e l i v e r a s i t e t h a t i s e r o s i o n r e s i s t a n t an d c l e a n . x Co n t r a c t o r s h a l l m a i n t a i n p o s i t i v e d r a i n a g e o f a m i n i m u m 2 % s l o p e aw a y f r o m p r o p o s e d b u i l d i n g . ADVANCE SURVEYING & ENGINEERING CO. Iherebycertifythatthisreportwaspreparedbymeorundermydirectsupervisionand thatIamalicensedprofessionallandsurveyorunderthelawsoftheStateofMinnesota. Thomas M. Bloom ThomasM.BloomP.L.S.No.42379 Step2:PROPOSEDHARDCOVER Inthefollowingtableidentifyallitemsofexistinghardcoverontheproperty,keyedbyletterto CertificateofSurvey(surveymustaccompanythisform).Useasmanylinesasnecessaryto accuratelydepictexistinghardcoverstatusoftheproperty. Keyto Survey HardcoverItem(Describe) LengthxWidth Total(SquareFeet) (Example)(Garage)(24'x30') (720) S.F. AHouse 2,017 S.F. B ConcreteDriveway 1,022 S.F. C FrontPorch/Steps 69 S.F. DRet.WallsͲNorthSideHome 49 S.F. ERet.WallsͲSouthSideHome 50 S.F. FRearDeck(PatioBelow) 224 S.F. GRearPatio 263 S.F. HRearRetainingWalls 96 S.F. IRearShed 260 S.F. J S.F. K S.F. L S.F. M S.F. N S.F. O S.F. P S.F. Q S.F. R S.F. S S.F. T S.F. U S.F. V S.F. W S.F. X S.F. Y S.F. Z S.F. (1)TotalProposedHardcover 4,050 S.F. ExcludableHardcover(SeeCityCodeSec78Ͳ1684) RetainingWalls 195 S.F. PerviousPaverPatio 100 S.F. S.F. S.F. S.F. (2)TotalExcludableHardcover 295 S.F. (3)NetProposedHardcover[Subtractline(2)fromline(1)] 3,755 S.F. (4)TotalLotArea 12,851 S.F. ProposedHardcoverPercentage[(3)/(4)]29.22% ± D W E L L I N G P R O P O S E D LEGAL DESCRIPTION:Lot 137, Spring Park, Hennepin County, Minnesota.SCOPE OF WORK & LIMITATIONS:1.Showing the length and direction of boundary lines of the l e g a l d e s c r i p t i o n l i s t e d a b o v e . The scope of our services does not include determining wh a t y o u o w n , w h i c h i s a l e g a l matter. Please check the legal description with your record s o r c o n s u l t w i t h c o m p e t e n t legal counsel, if necessary, to make sure that it is correct an d t h a t a n y m a t t e r s o f r e c o r d , such as easements, that you wish to be included on the surve y h a v e b e e n s h o w n . 2.Showing the location of observed existing improvements w e d e e m n e c e s s a r y f o r t h e survey.3.Setting survey markers or verifying existing survey marker s t o e s t a b l i s h t h e c o r n e r s o f the property.4.Existing building dimensions and setbacks measured to outsi d e o f s i d i n g o r s t u c c o . 5.Showing and tabulating impervious surface coverage of th e l o t f o r y o u r r e v i e w a n d f o r the review of such governmental agencies that may h a v e j u r i s d i c t i o n o v e r t h e s e requirements to verify they are correctly shown before proce e d i n g w i t h c o n s t r u c t i o n . 6.Showing elevations on the site at selected locations to g i v e s o m e i n d i c a t i o n o f t h e topography of the site. We have also provided a benchmark f o r y o u r u s e i n d e t e r m i n i n g elevations for construction on this site. The elevations s h o w n r e l a t e o n l y t o t h e benchmark provided on this survey. Use that benchmark a n d c h e c k a t l e a s t o n e o t h e r feature shown on the survey when determining other eleva t i o n s f o r u s e o n t h i s s i t e o r before beginning construction.7.This survey has been completed without the benefit of a curr e n t t i t l e c o m m i t m e n t . T h e r e may be existing easements or other encumbrances that wo u l d b e r e v e a l e d b y a c u r r e n t title commitment. Therefore, this survey does not purpor t t o s h o w a n y e a s e m e n t s o r encumbrances other than the ones shown hereon.8.It should be noted that this survey was completed with signi f i c a n t s n o w c o v e r a g e o n s i t e . We cannot be certain that all items were observed and lo c a t e d d u r i n g t h e p r o c e s s o f conducting the survey due to the snow cover. If this uncerta i n t y i s s o m e t h i n g y o u w o u l d like to remove, please expose all improvements and we can r e t u r n t o l o c a t e s a i d i t e m s , i f needed.STANDARD SYMBOLS & CONVENTIONS:"●" Denotes iron survey marker, found, unless otherwise noted. # 4 3 5 0 3 L I C E N S E N O . W a y n e W . P r e u h s D A T E S 1 J U N E 1 5 , 2 0 2 2 M i n n e t o n k a , M i n n e s o t a 5 5 3 4 5 P h o n e ( 9 5 2 ) 4 7 4 - 7 9 6 4 1 7 9 1 7 H i g h w a y N o . 7 W e b : w w w . a d v s u r . c o m A d v a n c e S u r v e y i n g & E n g i n e e r i n g , C o . A T R I O N F A I O L A 2 6 5 9 C A S C O P O I N T R D . C L I E N T / J O B A D D R E S S O R O N O , M N S H E E T T I T L E P R O P O S E D S U R V E Y S H E E T N O . S H E E T 1 O F 1 DWG ORIE N T A T I O N S C A L E 2 2 0 8 5 4 J R D R A W I N G N U M B E R 2 0 ' 1 0 ' 0 D E C E M B E R 2 2 , 2 0 2 1 D A T E S U R V E Y E D : J U N E 1 5 , 2 0 2 2 D A T E D R A F T E D : S H E E T S I Z E : 1 7 X 2 2 G R A D I N G & E R O S I O N C O N T R O L N O T E S : B E F O R E D E M O L I T I O N A N D G R A D I N G B E G I N · I n s t a l l s i l t f e n c e / b i o r o l l a r o u n d t h e p e r i m e t e r o f t h e c o n s t r u c t i o n a r e a . · S e d i m e n t c o n t r o l m e a s u r e s m u s t r e m a i n i n p l a c e u n t i l f i n a l s t a b i l i z a t i o n h a s b e e n e s t a b l i s h e d a n d t h e n s h a l l b e r e m o v e d . S e d i m e n t c o n t r o l s m a y b e r e m o v e d t o a c c o m m o d a t e s h o r t t e r m c o n s t r u c t i o n a c t i v i t y b u t m u s t b e r e p l a c e d b e f o r e t h e n e x t r a i n . · A t e m p o r a r y r o c k c o n s t r u c t i o n e n t r a n c e s h a l l b e e s t a b l i s h e d a t e a c h a c c e s s p o i n t t o t h e s i t e a n d a 6 i n c h l a y e r o f 1 t o 2 i n c h r o c k e x t e n d i n g a t l e a s t 5 0 f e e t f r o m t h e s t r e e t i n t o t h e s i t e a n d s h a l l b e u n d e r l a i n w i t h p e r m e a b l e g e o t e x t i l e f a b r i c . T h e e n t r a n c e s h a l l b e m a i n t a i n e d d u r i n g c o n s t r u c t i o n b y t o p d r e s s i n g o r w a s h i n g t o p r e v e n t t r a c k i n g o r f l o w o f s e d i m e n t s o n t o p u b l i c s t r e e t s , w a l k s o r a l l e y s . P o t e n t i a l e n t r a n c e s t h a t a r e n o t s o p r o t e c t e d s h a l l b e c l o s e d b y f e n c i n g t o p r e v e n t u n p r o t e c t e d e x i t f r o m t h e s i t e . · C o n t r a c t o r s h a l l i n s t a l l i n l e t p r o t e c t i o n o n a l l e x i s t i n g s t o r m s e w e r i n l e t s i n a c c o r d a n c e w i t h t h e c i t y s t a n d a r d d e t a i l s . I n l e t p r o t e c t i o n s h a l l a l s o b e p r o v i d e d o n a l l p r o p o s e d s t o r m s e w e r i n l e t s i m m e d i a t e l y f o l l o w i n g c o n s t r u c t i o n o f t h e i n l e t . I n l e t p r o t e c t i o n m u s t b e i n s t a l l e d i n a m a n n e r t h a t w i l l n o t i m p o u n d w a t e r f o r e x t e n d e d p e r i o d s o f t i m e o r i n a m a n n e r t h a t p r e s e n t s a h a z a r d t o v e h i c u l a r o r p e d e s t r i a n t r a f f i c . D U R I N G C O N S T R U C T I O N : · W h e n d i r t s t o c k p i l e s h a v e b e e n c r e a t e d , a d o u b l e r o w o f s i l t f e n c e s h a l l b e p l a c e d t o p r e v e n t e s c a p e o f s e d i m e n t l a d e n r u n o f f a n d i f t h e p i l e s o r o t h e r d i s t u r b e d a r e a s a r e t o r e m a i n i n p l a c e f o r m o r e t h a n 1 4 d a y s , t h e y s h a l l b e s e e d e d w i t h M i n n e s o t a D e p a r t m e n t o f T r a n s p o r t a t i o n S e e d M i x t u r e 2 2 - 1 1 1 a t 1 0 0 l b / a c r e f o l l o w e d b y c o v e r i n g w i t h s p r a y m u l c h . · A d u m p s t e r s h a l l b e p l a c e d o n t h e s i t e f o r p r o m p t d i s p o s a l o f c o n s t r u c t i o n d e b r i s . T h e s e d u m p s t e r s s h a l l b e s e r v i c e d r e g u l a r l y t o p r e v e n t o v e r f l o w i n g a n d b l o w i n g o n t o a d j a c e n t p r o p e r t i e s . D i s p o s a l o f s o l i d w a s t e s f r o m t h e s i t e s h a l l i n a c c o r d a n c e w i t h M i n n e s o t a P o l l u t i o n C o n t r o l A g e n c y r e q u i r e m e n t s . · A s e p a r a t e c o n t a i n e r s h a l l b e p l a c e d f o r d i s p o s a l o f h a z a r d o u s w a s t e . H a z a r d o u s w a s t e s s h a l l b e d i s p o s e d o f i n a c c o r d a n c e w i t h M P C A r e q u i r e m e n t s . · C o n c r e t e t r u c k w a s h o u t s h a l l b e i n t h e p l a s t i c l i n e d d i t c h a n d d i s p o s e o f w a s h i n g s a s s o l i d w a s t e . · S e d i m e n t c o n t r o l d e v i c e s s h a l l b e r e g u l a r l y i n s p e c t e d a n d a f t e r m a j o r r a i n f a l l e v e n t s a n d s h a l l b e c l e a n e d a n d r e p a i r e d a s n e c e s s a r y t o p r o v i d e d o w n s t r e a m p r o t e c t i o n . · S t r e e t s a n d o t h e r p u b l i c w a y s s h a l l b e i n s p e c t e d d a i l y a n d i f l i t t e r o r s o i l s h a s b e e n d e p o s i t e d i t s h a l l p r o m p t l y b e r e m o v e d . · I f n e c e s s a r y , v e h i c l e s , t h a t h a v e m u d o n t h e i r w h e e l s , s h a l l b e c l e a n e d b e f o r e e x i t i n g t h e s i t e i n t h e r o c k e n t r a n c e a r e a s · M o i s t u r e s h a l l b e a p p l i e d t o d i s t u r b e d a r e a s t o c o n t r o l d u s t a s n e e d e d . · P o r t a b l e t o i l e t f a c i l i t i e s s h a l l b e p l a c e d o n s i t e f o r u s e b y w o r k e r s a n d s h a l l b e p r o p e r l y m a i n t a i n e d . · I f i t b e c o m e s n e c e s s a r y t o p u m p t h e e x c a v a t i o n d u r i n g c o n s t r u c t i o n , p u m p d i s c h a r g e s h a l l b e i n t o t h e s t o c k p i l e a r e a s s o t h a t t h e d o u b l e s i l t f e n c e a r o u n d t h e s e a r e a s c a n f i l t e r t h e w a t e r b e f o r e i t l e a v e s t h e s i t e . · T e m p o r a r y e r o s i o n c o n t r o l s h a l l b e i n s t a l l e d n o l a t e r t h a n 1 4 d a y s a f t e r t h e s i t e i s f i r s t d i s t u r b e d a n d s h a l l c o n s i s t o f b r o a d c a s t s e e d i n g w i t h M i n n e s o t a D e p a r t m e n t o f T r a n s p o r t a t i o n S e e d M i x t u r e 2 2 - 1 1 1 a t 1 0 0 l b / a c r e f o l l o w e d b y c o v e r i n g w i t h s p r a y m u l c h . · E r o s i o n c o n t r o l m e a s u r e s s h o w n o n t h e e r o s i o n c o n t r o l p l a n a r e t h e a b s o l u t e m i n i m u m . T h e c o n t r a c t o r s h a l l i n s t a l l t e m p o r a r y e a r t h d i k e s , s e d i m e n t t r a p s o r b a s i n s a n d a d d i t i o n a l s i l t f e n c i n g a s d e e m e d n e c e s s a r y t o c o n t r o l e r o s i o n . S I T E W O R K C O M P L E T I O N : · W h e n f i n a l g r a d i n g h a s b e e n c o m p l e t e d b u t b e f o r e p l a c e m e n t o f s e e d o r s o d a n “ a s b u i l t ” s u r v e y s h a l l b e d o n e p e r C i t y o f M i n n e t o n k a r e q u i r e m e n t s t o i n s u r e t h a t g r a d i n g w a s p r o p e r l y d o n e . · W h e n a n y r e m e d i a l g r a d i n g h a s b e e n c o m p l e t e d , s o d o r s e e d i n g s h a l l b e c o m p l e t e d i n c l u d i n g a n y e r o s i o n c o n t r o l b l a n k e t s f o r s t e e p a r e a s . · W h e n t u r f i s e s t a b l i s h e d , s i l t f e n c e a n d i n l e t p r o t e c t i o n a n d o t h e r e r o s i o n c o n t r o l d e v i c e s s h a l l b e d i s p o s e d o f a n d a d j a c e n t s t r e e t s , a l l e y s a n d w a l k s s h a l l b e c l e a n e d a s n e e d e d t o d e l i v e r a s i t e t h a t i s e r o s i o n r e s i s t a n t a n d c l e a n . · C o n t r a c t o r s h a l l m a i n t a i n p o s i t i v e d r a i n a g e o f a m i n i m u m 2 % s l o p e a w a y f r o m p r o p o s e d b u i l d i n g . ADVANCE SURVEYING & ENGINEERING CO. I hereby certify that this report was prepared by me or under my direct supervision and that I am a licensed professional land surveyor under the laws of the State of Minnesota. Thomas M. Bloom Thomas M. Bloom P.L.S. No. 42379 Step 2: PROPOSED HARDCOVER In the following table identify all items of existing hardcover on the property, keyed by letter to Certificate of Survey (survey must accompany this form). Use as many lines as necessary to accurately depict existing hardcover status of the property. Key to Survey Hardcover Item (Describe) Length x Width Total (Square Feet) (Example)(Garage) (24' x 30') (720) S.F. A House 2,017 S.F. B Concrete Driveway 1,022 S.F. C Front Porch/Steps 69 S.F. D Ret. Walls‐North Side Home 49 S.F. E Ret. Walls‐South Side Home 50 S.F. F Rear Deck (Patio Below) 224 S.F. G Rear Patio 263 S.F. H Rear Retaining Walls 96 S.F. I Rear Shed 260 S.F. J S.F. K S.F. L S.F. M S.F. N S.F. O S.F. P S.F. Q S.F. R S.F. S S.F. T S.F. U S.F. V S.F. W S.F. X S.F. Y S.F. Z S.F. (1) Total Proposed Hardcover 4,050 S.F. Excludable Hardcover (See City Code Sec 78‐1684) Retaining Walls 195 S.F. Pervious Paver Patio 100 S.F. S.F. S.F. S.F. (2) Total Excludable Hardcover 295 S.F. (3) Net Proposed Hardcover [Subtract line (2) from line (1)] 3,755 S.F. (4) Total Lot Area 12,851 S.F. Proposed Hardcover Percentage [(3) / (4)]29.22% ± WAYZATA, MN 55391 275 EAST LAKE STREET FAX: 952.473.8222 Phone: 952.473.8777 WAYZATA, MN 55391 275 EAST LAKE STREET FAX: 952.473.8222 Phone: 952.473.8777 WAYZATA, MN 55391 275 EAST LAKE STREET FAX: 952.473.8222 Phone: 952.473.8777 MINUTES OF THE ORONO PLANNING COMMISSION Monday, July 18, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ PUBLIC HEARINGS 2. LA22-000035 ALEXANDER DESIGN GROUP, 2659 CASCO POINT ROAD, REQUESTS VARIANCES FOR HARDCOVER, LOT AREA AND LOT WIDTH IN CONJUNCTION WITH REDEVELOPMENT OF THE PROPERTY. (STAFF: MELANIE CURTIS) Kristy Raasch, Alexander Design Group, and Atrion Faiola. Applicant, were present. City Planner Curtis gave a presentation on the item and asked if the Commissioners received her email that afternoon with revised plans to the application. The Applicant has provided revised plans in response to the Staff recommendation of denial within the report. They are requesting variances in order to construct a new home on a property with substandard area and width. According to the revised plans they continue to request a hardcover variance to permit 29.2% hardcover where 25% is permitted; 32.1% currently exists and the original request reflect 30.8% hardcover. The revised plan reflects a 214 square foot reduction, they have eliminated the requested structural coverage variance and now show 20% conforming structural coverage. The boat house or shed down by the lake is existing and is planned to be rebuilt in-kind. The Applicant has stated that the size and width of the property provide challenges for development. The nonconforming lot size limits the amount of building footprint and hardcover from that of a conforming sized lot. They have provided supporting documentation and should be asked for additional testimony regarding the application. In this neighborhood, Staff finds practical difficulties inherent to the size and shape of the lot affecting the property which justifies the variances allowing redevelopment. However, the proposed structural coverage level, hardcover level, and deck stair encroachment into the side setback are not supported by practical difficulties. The plans have been modified to reduce building coverage and resulting hardcover, and the side setback for the deck stair has been eliminated. The Applicant submitted a neighborhood letter with signatures from neighbors; one neighbor comment was received via email and distributed today and should be included in the public record. Staff finds the lot area and width variances are supported by practical difficulty and Staff supports granting those variances. Staff would additionally support some level of hardcover variance for the redevelopment. Planning Commission should determine if revised hardcover level is supported by practical difficulty. Ms. Raasch stated with the lot being substandard they found it very difficult to get to the 25% and because the lot has an existing boat house it is also adding to the structural coverage and hardcover. She noted they are trying to improve the parking with a side-load garage and driveway which will allow more parking on their driveway and less on Casco Point Road. Chair McCutcheon opened the public hearing at 6:18 p.m. There were no public comments. Chair McCutcheon closed the public hearing at 6:18 p.m. The Commissioners discussed the item. Libby asked if the shed will be purely storage which is why they are looking at like-kind. Ms. Raasch replied in the affirmative. Chair McCutcheon noted it is an improvement and he would like to hear the Commissioners’ opinion on whether they are okay with the hardcover. MINUTES OF THE ORONO PLANNING COMMISSION Monday, July 18, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Kirchner’s first thought is that it is an improvement, however this is a completely new structure and these moments offer the opportunity to make it right and make it conforming to the hardcover. That is his struggle and he is hung up on the hardcover variance, noting one can still build there it is just a matter of size and hardcover. Ressler is in support of this because 60 foot wide lots do not allow accommodation for structure in general, although this is a deeper lot which gives some relief in the calculations. He noted they are meeting lakeshore and north/south setbacks. In looking at the design as proposed he does not know if there is a way to redesign without making more of a nuisance for the neighbors with parking spilling out onto the street. He is in support of the application and feels practical difficulty is met because of the lot width and mitigating circumstances, improvement to existing hardcover, and meeting the setbacks of basically everything else. Chair McCutcheon agrees. If it was a lot of massing it would be different but it is subtle, the garage is basically attached to the house. He thinks it is a better layout, they are reducing hardcover, and it is safer for the community and Applicant. He noted on that small of a lot, the Applicant does not have a lot of options. Having the support of the neighbors also helps him with this application. Erickson appreciates the effort they are making and that it is a narrow lot. However hardcover is still an issue. In the past the Planning Commission was always quite strict if one has a small lot, then they build a small house. Since that time they have seen people wanting a larger house on a small lot and then they see variances with a number of variances already being approved. Peterson was opposed to the application until the latest publication. He thinks this is good faith of the builder and homeowner and would be in favor. Ressler moved, Libby seconded, to approve LA22-000035, 2659 Casco Point Road, as amended per the application received today, July 18, 2022. VOTE: Ayes: 4, Nays 2 (Kirchner, Erickson). From:Dustin Kindl To:Melanie Curtis Cc:Casie Kindl; afaiola@northportfunding.com Subject:2659 Casco Pt Rd - variance application Date:Friday, July 15, 2022 2:03:23 PM Hi Melanie. We live in the home next door to 2659 and share the north property line that runs east/west. I am writing to let you know that my wife (Casie) and I fully support Atrion and Lisa’a plans to build their new home. Furthermore, we support their hardcover overage variance request. We did not have a chance to sign the form previously submitted with their plans for your review, so I wanted to send an email to let you know. Please let me know if there is anything else we could do that would be helpful to you supporting their variance application and recommending it be approved. Thank you! Dustin Kindl 2649 Casco Pt Rd Orono MN 55391 612-414-2889 Date Application Received: 06/22/2022 Date Application Considered as Complete: 06/22/2022 60-Day Review Period Extension Expires: 08/21/2022 To: Chair McCutcheon and Planning Commission Members Adam Edwards, City Administrator From: Melanie Curtis, Planner mcc Date: 18 July 2022 Subject: #LA22-000035, Alexander Design Group o/b/o Atrion & Lisa Faiola, 2659 Casco Point Road Variances / Public Hearing Background The applicant is requesting variances in order to construct a new home on a property with substandard area and width. Additionally requested are a side yard setback variance for deck stairs, a hardcover variance to permit 30.8% hardcover where 25% is permitted and 32.1% currently exists; and a structural coverage variance to permit 21.6% hardcover where 20% is the maximum allowed. The boathouse/shed on the property will be rebuilt in kind. Practical Difficulties Analysis Applicant Submittal Information: The applicant has stated that the size and width of the property provide challenges for development. The nonconforming lot size limits the amount of building footprint and hardcover from that of a conforming sized lot. They have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. Planning Staff Practical Difficulty Analysis: In this neighborhood, Staff finds practical difficulties inherent to the size and shape of the lot affecting the property which justify the variances allowing redevelopment. However, the proposed structural coverage level, hardcover level, and deck stair encroachment into the side setback are not supported by practical difficulties. The plans could be modified to further reduce building coverage and hardcover. Application Summary: The applicant is requesting lot width, lot area, side setback, structural coverage, and hardcover variances in order to redevelop the property. Staff Recommendation: Staff recommends denial as proposed. FILE # LA22-000035 18 July 2022 Page 2 of 5 LOT ANALYSIS WORKSHEET Section 78-350 - Setbacks: LR-1C Required Proposed Rear/Street 30’ 32.9’ North Side 7.5’ 7.8’ South Side 7.5’ 7.5’ House 3.3’ Deck stair Lakeshore 75’ 107’ Average Lakeshore The average lakeshore setback will be met. Section 78- 350 - Lot Area/Width: LR-1C Lot Area Lot Width Required 21,780 s.f. (0.5 acres) 100’ Actual 12,851 s.f. (0.29 acre) 60’ @ 75’ / 60’ @ OHWL Section 78-1403- Structural Building Coverage: Total Lot Area Total Structural Coverage 12,851 s.f. (0.29 acre) Allowed: 2,570 s.f. (20%) Proposed: 2,778 s.f. (21.6%) Section 78-1700 - Hardcover Calculations: Stormwater Overlay District Tier Total Area in Zone Allowed Hardcover Proposed Hardcover Tier 1 12,851 s.f. 3,212 s.f. (25%) 3,969 s.f. (30.8%) Applicable Regulations: Lot Area and Lot Width Variances (Section 78-350) Zoning Code Section 78-72 provides options for the redevelopment of lots which do not meet the minimum area or width requirements for the respective zoning district. Substandard properties within the Shoreland Overlay District, like the subject lot, are able to be redeveloped without variances if specific standards are met; such as: 1. All setback requirements can be met; 2. A Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, can be installed or the lot is connected to a public sewer; and 3. The impervious surface coverage meets all hardcover location and square footage restrictions of this chapter and the total square footage of hardcover does not exceed the percentage permitted in the appropriate Stormwater Quality Overlay District Tier. 4. All other zoning district standards can be met. The applicant’s request for structural coverage, hardcover, and side setback variances results in the property’s inability to conform to all of the standards above. Therefore, lot area and lot width variances FILE # LA22-000035 18 July 2022 Page 3 of 5 are also required in order to redevelop the property. The ability to develop the property consistent with other existing developed properties in the neighborhood would be limited if the area and width variances are not granted. Structural Coverage Variance (Section 78-1403) The Code states that residential properties between 10,000 square feet and 2.0 acres are limited to 20% of the property’s area for building coverage. The applicant is proposing a 2,518 square foot home, and a 260 square foot boat house/shed exists on the property. Together, the buildings total 2,778 square feet (21.6%) structural coverage, which is 207 square feet over the limit. Hardcover Variance (Section 78-1700) The proposed plans provide a hardcover reduction of 170 square feet (1.3%) from existing conditions, resulting in 30.8% hardcover where 32.1% currently exists. Tier 1 limits hardcover to 25% of the lot area. Eliminating the overage in structural coverage (207 square feet) would result in a proposed hardcover level of 29.2%. Side Setback Variance (Section 78-350 & 78-1405) The plans reflect a 4-foot wide deck stair encroaching within the south side lot setback area, 3.3-feet from the side lot line. In design, the applicant applied the City’s nonencroachment provision in 78-1405(3) which states that “steps, sidewalks, uncovered porches, stoops or similar structures which do not extend above the height of the ground floor of the principal building” can be situated as close as 2 feet to any lot line. Although the Code does not specify, Staff interprets and applies this section to those listed features which provide required egress to the home. The steps off of the rear deck do not meet this standard; a variance is required. Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. The proposed lot area and width variances are in harmony with the purpose of the Ordinance. The substandard lot has difficulties in its small size and depth, and proximity to the lake to permit redevelopment. The variances for structural coverage, hardcover, and side setback are not in harmony with the purpose of the Ordinance. This criterion is not met. 2. The variance is consistent with the comprehensive plan. The structural coverage and hardcover variances proposed to develop this nonconforming lot of record are not consistent with the FILE # LA22-000035 18 July 2022 Page 4 of 5 comprehensive plan. The setback variance could be eliminated if the building coverage is reduced. This criterion is not met. 3. The applicant establishes that there are practical difficulties. This criterion is not met. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; the request to permit construction of the home on the substandard lot is reasonable. However, the type and level of variances requested for development are out of scale for the property and are not reasonable. b. There are circumstances unique to the property not created by the landowner; The substandard size is an existing condition and there is no available land with which to make the property conforming. There should be consideration for variance approvals from the lot width and area requirements. The house size resulting in the requested setback, structural coverage, and hardcover variances are created by the property owner; and c. The variance will not alter the essential character of the locality. The variances are requested in order to permit construction of a home, which is reasonable. However the size and scale of the proposed development on this property would be out of character with the neighborhood. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 4. Economic considerations alone do not constitute practical difficulties. Economic considerations have not been a factor in the variance approval determination. 5. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78. This condition is not applicable. 6. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located. This condition is not applicable, as a residential home is an allowed use in the LR-1C District. 7. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The property’s substandard size creates difficulties which also apply to many of the properties in the same neighborhood. The proposed structural and hardcover levels should be scaled for the size of the property and as proposed are out of character. 9. The conditions do not apply generally to other land or structures in the district in which the land is located. The property’s substandard size creates difficulties which also apply to many of the properties in the same neighborhood. 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. Granting lot area and lot width variances are necessary for the preservation of the property right of the applicant. The structural coverage, hardcover, and setback variances which result in a construction of a home which exceeds the building coverage limitations is not a property right of the owners. 11. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. Granting the variances for lot width and lot area in this unique situation is not contrary to the intent of the zoning chapter. However, the requested structural coverage, hardcover, and setback variances as proposed are contrary to the zoning chapter. FILE # LA22-000035 18 July 2022 Page 5 of 5 12. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The variances for lot area, lot width are necessary, and do not merely serve as a convenience to the applicant. However, the proposed hardcover and structural coverage variances would be a convenience to the owners. This criterion is not met. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. Public Comments The applicant has submitted a neighborhood letter with signatures from the neighbors. No additional public comments have been submitted. Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance(s), if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions in order to mitigate the impacts created by the granting of the requested variance(s)? 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Staff does not find practical difficulties which support the level of variances requested. The lot area and width variances to address the substandard lot size are supported by practical difficulty; staff supports granting those variances. However, the structural coverage level, 208 square feet more than permitted, is compounded by the requested hardcover and setback variances for the home. Staff recommends the applicant redesign to reduce the structural and hardcover levels for the project. Staff recommends denial of the application as proposed. List of Exhibits Exhibit A. Application & Neighbor letter Exhibit B. Narrative and Practical Difficulties Form Exhibit C. Existing Conditions Survey Exhibit D. Proposed Survey Exhibit E. Proposed Plans – House and Boathouse Exhibit F. Proposed Renderings & Landscape Plan Exhibit G. Hardcover Calculations (Staff Edit) Exhibit H. Aerial Photos Exhibit I. Property Owners List Exhibit J. Plat Map AGENDA ITEM Prepared By: RJO Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this item is to publically present the 2021 audit and draft Comprehensive Annual Financial Report (CAFR) to the Council and public. 2. Background. Upon completion of the annual audit, the City’s auditors publically present the results to the Mayor and Council. Bonnie Schwieger from Abdo, Eick & Meyers, LLC is here tonight to present the 2021 audit results. COUNCIL ACTION REQUESTED: No action is required. This is an information item only. Exhibits A. 2021 Draft CAFR B. Management Communication Letter C. Other Required Reports Legal Compliance Internal Control Item No.: 12 Date: August 8, 2022 Item Description: 2021 Comprehensive Annual Financial Report Presentation Presenter: Ron Olson, Finance Director Agenda Section: Presentation ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021 CITY OF ORONO, MINNESOTA DRAFT THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT CITY OF ORONO, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021 REPORT PREPARED BY: FINANCE DEPARTMENT DRAFT THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT City of Orono, Minnesota Annual Comprehensive Financial Report Table of Contents For the Year Ended December 31, 2021 Page No. Introductory Section Organization Chart 10 Elected and Appointed Officials 11 Financial Section Independent Auditor’s Report 15 Management’s Discussion and Analysis 19 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 33 Statement of Activities 34 Fund Financial Statements Governmental Funds Balance Sheet 38 Reconciliation of the Balance Sheet to the Statement of Net Position 41 Statement of Revenues, Expenditures and Changes in Fund Balances 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 44 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 45 Proprietary Funds Statement of Net Position 46 Statement of Revenues, Expenses and Changes in Net Position 49 Statement of Cash Flows 50 Notes to the Financial Statements 53 Required Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 84 Schedule of Employer’s Public Employees Retirement Association Contributions - General Employees Retirement Fund 84 Notes to the Required Supplementary Information - General Employee Retirement Fund 85 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 87 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 87 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 88 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 90 DRAFT 5 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 6 City of Orono, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2021 Page No. Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 95 Nonmajor Special Revenue Funds Subcombining Balance Sheet 98 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 100 Nonmajor Debt Service Funds Subcombining Balance Sheet 104 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 105 Nonmajor Capital Projects Fund Subcombining Balance Sheet 108 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 110 Nonmajor Proprietary Funds Combining Statement of Net Position 114 Combining Statement of Revenues, Expenses and Changes in Net Position 115 Combining Statement of Cash Flows 116 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 117 Internal Service Funds Combining Statement of Net Position 120 Combining Statement of Revenues, Expenses and Changes in Net Position 121 Combining Statement of Cash Flows 122 Statistical Section (Unaudited) Financial Trends Summary Financial Report - Revenues and Expenditures for General Operations - Governmental Funds 127 Net Position by Component 128 Changes in Net Position 130 Fund Balances of Governmental Funds 134 Changes in Fund Balances of Governmental Funds 136 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 138 Property Tax Rates - Direct and Overlapping Governments 139 Principal Property Taxpayers 140 Property Tax Levies and Collections 141 Debt Capacity Ratios of Outstanding Debt by Type 142 Ratios of General Bonded Debt Outstanding 143 Direct and Overlapping Governmental Activities Debt 145 Legal Debt Margin Information 146 Pledged Revenue Coverage 148 Demographic and Economic Information Demographic and Economic Statistics 149 Principal Employers 151 Operating Information Full-Time Equivalent Employees by Function 152 Operating Indicators by Function 154 Capital Asset Statistics by Function 156 DRAFT 7 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 8 INTRODUCTORY SECTION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 9 Public City Administrator Fire Building Inspections Legal Engineer Assessor Auditor Bond Counsel Financial Advisor Advisory Commissions City Clerk Management Assistant Municipal Services Support Rep Accountant Payroll/U.B. (.8 FTE) IT Technician Patrol Officers (21) PT Patrol Officers (3) CSO (1 FT, 1 PT) Police Office Manager Admin. Support Asst. (2) Reserve Officers Planning Commission Park Commission Police Advisory Commission Long Lake Fire Advisory Commission Hwy 12 Turnback Committee Public Works Director / City Engineer Community Development Director Police Chief Roads/Storm water Supervisor Sewer/Water Supervisor Maintenance Staff (7) Golf/Parks Supervisor Seasonal Clubhouse Manager Seasonal Staff Contracted Services Finance Director Patrol Sgt. (3) Investigative Sgt (1) Deputy Chief •Senior Planner •Building Official •City Planners •Planning Assistant Mayor & Council City of Orono Organizational Chart DRAFT 10 City of Orono, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2021 Name Title Term Expires Dennis Walsh Mayor 12/31/24 Aaron Printup Council Member 12/31/22 Victoria Seals Council Member 12/31/24 Richard Crosby II Council Member 12/31/24 Matt Johnson Council Member 12/31/22 Name Title Adam Edwards City Administrator Ronald Olson Finance Director - Treasurer ELECTED APPOINTED DRAFT 11 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 12 FINANCIAL SECTION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 13 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 14 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Orono, Minnesota Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City), as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in accordance with accounting principles generally accepted in the United States of America . Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementatio n, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influ ence the judgment made by a reasonable user based on the financial statements. DRAFT 15 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include exa mining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis starting on page 19 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions, the related notes disclosures and the Schedule of Changes in the City’s OPEB Liability and Related Ratios starting on page 84 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, statistical section and combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements, schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. DRAFT 16 Other Information Management is responsible for the other information in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statement do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated NEED DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Abdo Minneapolis, Minnesota NEED DATE DRAFT 17 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 18 Management’s Discussion and Analysis As management of the City of Orono, Minnesota, (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2021. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $59,239,303 (net position). Of this amount, $6,322,091 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors. • The City’s net position for governmental activities increased $2,952,940 and business-type activities increased $1,592,802, resulting in a total increase of $4,545,742, mainly as a result of increased grant revenue for governmental activities and increased charges for services for business-type activities. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $22,021,663, an increase of $14,867,795 in comparison with the prior year. • At the end of the current fiscal year, unassigned fund balance for the General fund was $4,619,903, or 46.3 percent of next year's budgeted expenditures. • The City’s total debt increased $13,746,488, (224.60% percent) during the current fiscal year. The decrease was due to scheduled debt payments. DRAFT 19 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The following ch art shows how the various parts of this annual report are arranged and related to one another: The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the government-wide financial statements, to avoid “doubling-up” effect within the governmental and business-type activities columns of said statements. Figure 1 Required Components of the City’s Annual Financial Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Government- wide Financial Statements Fund Financial Statements Notes to the Financial Statements Summary Detail DRAFT 20 Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government and the City’s component units The activities of the City that are not proprietary or fiduciary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures, and Changes in Fund Balances • Statements of Net Position • Statements of Revenues, Expenses and Changes in Fund Net Position • Statements of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long- term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long- term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows or resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/out flow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows, liabilities, and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). DRAFT 21 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, community development, and interest on long-term debt. The business-type activities of the City include water and sewer utilities and the golf course. The government-wide financial statements start on page 33 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains numerous individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Municipal State Aid Street fund, 2010 General Obligation Bond, Pavement Management Plan and Project Construction Funds which are all considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for its General fund . A budgetary comparison statement has been provided for these funds to demonstrate compliance with its budget. The basic governmental fund financial statements start on page 38 of this report. Proprietary Funds. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for all the water, sewer, and golf course funds, which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the intern al service funds is provided in the form of combining statements elsewhere in this report. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer and golf operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for insurance, compensated absences, fleet management and IT services. Because these services benefit both governmental and business-type activities, they are allocated to both governmental and business-type activities in the government-wide financial statements. The basic proprietary fund financial statements start on page 46 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 53 of this report. DRAFT 22 Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pensions and other postemployment benefits to its employees. Required supplementary information can be found starting on page 84 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented following the required supplementary information. Combining and individual fund financial statements and schedules start on page 94 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In th e case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $59,239,303 at the close of the most recent fiscal year. By far, the largest portion of the City’s net position (85.2 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Orono’s Summary of Net Position Increase Increase 2021 2020 (Decrease)2021 2020 (Decrease) Assets Current and other assets 26,013,907$ 11,319,525$ 14,694,382$ 6,775,308$ 5,691,848$ 1,083,460$ Capital assets, net of depreciation 35,089,693 33,559,854 1,529,839 20,139,433 19,726,605 412,828 Total Assets 61,103,600 44,879,379 16,224,221 26,914,741 25,418,453 1,496,288 Deferred Outflows of Resources Deferred other postemployment benefits resources 129,109 78,314 50,795 23,403 10,934 12,469 Deferred pension resources 3,786,052 1,811,018 1,975,034 192,938 57,752 135,186 Total Deferred Outflows or Resources 3,915,161 1,889,332 2,025,829 216,341 68,686 147,655 Liabilities Noncurrent liabilities outstanding 23,169,933 10,720,869 12,449,064 1,212,714 1,474,826 (262,112) Other liabilities 2,647,795 2,559,517 88,278 362,604 281,220 81,384 Total Liabilities 25,817,728 13,280,386 12,537,342 1,575,318 1,756,046 (180,728) Deferred Inflows of Resources Deferred other postemployment benefits resources 149,243 175,366 (26,123) 27,053 24,485 2,568 Deferred pension resources 5,090,758 2,304,867 2,785,891 250,440 21,139 229,301 Total Deferred Inflows or Resources 5,240,001 2,480,233 2,759,768 277,493 45,624 231,869 Net Position Net investment in capital assets 31,038,598 28,256,953 2,781,645 19,404,787 18,910,474 494,313 Restricted 2,473,827 2,867,209 (393,382) - - - Unrestricted 448,607 (116,070) 564,677 5,873,484 4,774,995 1,098,489 Total Net Position 33,961,032$ 31,008,092$ 2,952,940$ 25,278,271$ 23,685,469$ 1,592,802$ Governmental Activities Business-type Activities An additional portion of the City’s net position (4.2 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($6,322,091) may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all categories of net position. The same situation held true for the prior fiscal year. DRAFT 23 Significant changes from the prior year are noted below: City of Orono’s Changes in Net Position Increase Increase 2021 2020 (Decrease)2021 2020 (Decrease) Revenues Program Revenues Charges for services 5,049,369$ 4,242,624$ 806,745$ 4,873,537$ 4,152,477$ 721,060$ Operating grants and contributions 550,474 976,217 (425,743) 15,982 - 15,982 Capital grants and contributions 273,445 617,082 (343,637) 364,815 6,050 358,765 General Revenues Taxes Property taxes 6,551,553 5,999,083 552,470 - - - Tax increment 145,895 82,686 63,209 - - - Grants and contributions not restricted to specific programs 1,784 5,321 (3,537) - - - Unrestricted investment earnings (6,927) 173,308 (180,235) (17,927) 88,571 (106,498) Gain on sale of capital assets 48,388 36,217 12,171 - - - Total Revenues 12,613,981 12,132,538 481,443 5,236,407 4,247,098 989,309 Expenses General government 1,572,281 1,865,451 (293,170) - - - Public safety 5,445,046 6,361,790 (916,744) - - - Streets 1,705,585 1,946,959 (241,374) - - - Culture and recreation 731,394 696,274 35,120 - - - Community development 59,265 111,781 (52,516) - - - Interest on long-term debt 359,970 138,240 221,730 - - - Water - - - 1,110,702 1,044,516 66,186 Sewer - - - 1,676,642 1,743,277 (66,635) Storm Water - - - 310,626 354,524 (43,898) Recycling - - - 232,165 227,227 4,938 Cable Television - - - 100,970 91,128 9,842 Total Expenses 9,873,541 11,120,495 (1,246,954) 3,431,105 3,460,672 (29,567) Change in Net Position before Transfers 2,740,440 1,012,043 1,728,397 1,805,302 786,426 1,018,876 Transfers (Net)212,500 170,000 42,500 (212,500) (170,000) (42,500) Change in Net Position 2,952,940 1,182,043 1,770,897 1,592,802 616,426 976,376 Net Position, January 1 31,008,092 29,826,049 1,182,043 23,685,469 23,069,043 616,426 Net Position, December 31 33,961,032$ 31,008,092$ 2,952,940$ 25,278,271$ 23,685,469$ 1,592,802$ Governmental Activities Business-type Activities • The increase in Program Revenues from the prior year relates to charges for services. Charges for services increased due to increased building activity. • The decreased Public Safety expenses from prior year is expenses related to the COVID-19 pandemic in the prior year. • The decreased Public Works expense from prior year is due to various street improvement projects in the prior year. DRAFT 24 Governmental Activities. Governmental activities increased the City’s net position by $2,952,940. This increase was primarily the result of current year increase in revenues and change in pension liability balances. The following graph depicts various governmental activities and shows the revenues and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 General Government Public Safety Public Works Parks and Recreation Community Development Interest on Long-term Debt Expenses Program Revenues Revenues by Source - Governmental Activities Charges for Services 40.0% Operating Grants and Contributions 4.4% Capital Grants and Contributions 2.2% Grants and Contributions Unrestricted 0.0% Taxes 53.1% Other 0.3% DRAFT 25 Business-type Activities. The net position of business-type activities increased by $1,592,802. This increase was primarily the result of an increase in charges for services. Below are graphs showing the business-type activities revenue and expense comparisons. Expenses and Program Revenues - Business-type Activities $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Water Sewer Storm Water Recycling Cable Television Expenses Program Revenues Revenues by Source - Business-type Activities Charges for Services 93.30% Capital Grants and Contributions 7.0% Unrestricted Investment Earnings -0.3% DRAFT 26 Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $22,021,663, an increase of $14,867,795 in comparison with the prior year. Approximately 0.5 percent of this total amount, $135,537, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is not available for new spending because it is either 1) nonspendable $40,670, 2) restricted $18,561,508, 3) committed $38,712, or 4) assigned $3,245,236. For further classification refer to Note 3E starting on page 70 of this report. Activity in the City’s major funds is discussed below: Increase 2021 2020 (Decrease) General 4,660,573$ 4,547,033$ 113,540$ Municipal State Aid Street (1,813,502)$ (1,922,298)$ 108,796$ 2010 General Obligation Bond (877,128)$ 594,204$ (1,471,332)$ Pavement Management Plan (774,042)$ (822,820)$ 48,778$ Project Construction Fund 15,778,512$ -$ 15,778,512$ The 2012 General Obligation Bond fund is used to collect and spend resources related to the bonds issued in 2010. The decrease in fund balance is directly attributed to the paying down of debt obligations The Pavement Management Plan fund collects and allocates resources realted to the repair and maintenance of roads within the City. The increase in fund balance is due to transfers from other funds. The Project Construction Fund is used to collect and spend resources related to various construction projects within the City. The increase is due to bond proceeds exceeding current year project costs. Fund Balances Major Fund December 31, The General fund is the chief operating fund of the City. As a measure of the General fund’s liquidity, it may be useful to compare total fund balance to the annual budget. The fund balance is 50.0 percent of the annual budgeted expenses. The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid streets and highways. The Fund balance increase in the current year mostly due to a decrease in the amount of Capital Outlay expenses by the fund in the current year. Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. At the end of the year, unrestricted net position of the enterprise funds amounted to $6,604,757. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights a The City’s General fund budget was not amended during the year. The final budget anticipated no changes in fund balance. Revenues were more than budget by $730,548, primarily due to intergovernmental and charges for services revenue coming over budget by $278,258 and $431,921 respectively. Expenditures were $45,099 more than budgeted amounts, primarily due to expenditures for public works coming in over budget by -$21,564. DRAFT 27 Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2021, amounts to $55,229,126 (net of accumulated depreciation). This investment in capital assets includes land (tangible and intangible), buildings, improvements, machinery and equipment, park facilities, roads and bridges, and other infrastructure. Major capital asset events during the current fiscal year included the following: •Various City police equipment was purchased •2021 Street improvement projects were started. •The City also had various sewer and drainage improvements started in 2021 City of Orono’s Capital Assets (Net of Depreciation) Additional information on the City’s capital assets can be found in Note 3B starting on page 65 of this report. Increase Increase 2021 2020 (Decrease)2021 2020 (Decrease) Land 7,677,435$ 7,677,435$ -$ 86,074$ 86,074$ -$ Construction in Progress 2,106,261 2,077,173 29,088 245,058 387,468 (142,410) Infrastructure 13,243,724 12,348,093 895,631 1,007,169 17,572,370 (16,565,201) Buildings and Systems 7,570,954 7,758,294 (187,340) (266) 1,076,935 (1,077,201) Improvements other than Buildings 2,081,191 1,322,199 758,992 555,892 762 555,130 Machinery and Equipment 2,410,128 2,376,660 33,468 18,245,506 602,996 17,642,510 Total 35,089,693$ 33,559,854$ 1,529,839$ 20,139,433$ 19,726,605$ 412,828$ Governmental Activities Business-type ActivitiesDRAFT 28 Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $19,110,000. All of the City’s bonds are backed by the full faith and credit of the City. State statutes limit the amount of G.O. debt a Minnesota city may issue to 3 percent of total estimated market value. The current debt limitation for the City is $102,551,528. Only the $19,110,000 in G.O. bonds is counted within the statutory limitation. City of Orono’s Outstanding Debt Increase Increase 2021 2020 (Decrease)2021 2020 (Decrease) G.O. Revenue Bonds 18,385,000$ 5,185,000$ 13,200,000$ 725,000$ 805,000$ (80,000)$ Bond Premium 745,874 117,901 627,973 11,131 12,616 (1,485) Total 19,130,874$ 5,302,901$ 13,827,973$ 736,131$ 817,616$ (81,485)$ Governmental Activities Business-type Activities Additional information on the City’s long-term debt can be found in Note 3D starting on page 68 of this report. Economic Factors and Next Year’s Budgets and Rates •Water rates are continuing to be increased based on the updated utility rate study, with the goal of producing a positive operating income in the future. •The City has completed the development of a Capital Improvement Plan (CIP) that was formally adopted by the City Council. This plan is reviewed annually as part of the budget process. Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Orono, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323 or by calling (952) 249-4600.DRAFT 29 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 30 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 31 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 32 City of Orono, Minnesota Statement of Net Position December 31, 2021 Governmental Business-type Activities Activities Total Assets Cash and temporary investments 24,986,924$ 6,133,408$ 31,120,332$ Receivables Accrued interest 11,561 6,361 17,922 Taxes 114,437 - 114,437 Accounts 119,037 439,678 558,715 Special assessments 24,017 117,846 141,863 Due from other governments 672,345 4,199 676,544 Inventories 3,494 14,779 18,273 Prepaid items 82,092 59,037 141,129 Capital assets Land and construction in progress 9,783,695 331,132 10,114,827 Depreciable assets (net of accumulated depreciation)25,305,998 19,808,301 45,114,299 Total Assets 61,103,600 26,914,741 88,018,341 Deferred Outflows of Resources Deferred other postemployment benefits resources 129,109 23,403 152,512 Deferred pension resources 3,786,052 192,938 3,978,990 Total Deferred Outflows of Resources 3,915,161 216,341 4,131,502 Liabilities Accounts and contracts payable 355,658 320,288 675,946 Accrued salaries payable 103,359 10,536 113,895 Due to other governments 80,022 17,267 97,289 Accrued interest payable 36,885 7,513 44,398 Deposits payable 1,592,377 7,000 1,599,377 Unearned revenue 479,494 - 479,494 Noncurrent liabilities Due within one year Long-term liabilities 1,352,736 127,487 1,480,223 Due in more than one year Long-term liabilities 18,407,042 653,885 19,060,927 Net pension liability 2,515,527 269,178 2,784,705 Other postemployment benefits liability 894,628 162,164 1,056,792 Total Liabilities 25,817,728 1,575,318 27,393,046 Deferred Inflows of Resources Deferred pension resources 5,090,758 250,440 5,341,198 Deferred other postemployment benefit resources 149,243 27,053 176,296 Total Deferred Inflows of Resources 5,240,001 277,493 5,517,494 Net Position Net investment in capital assets 31,038,598 19,404,787 50,443,385 Restricted for Debt service 1,651,626 - 1,651,626 Golf course improvements 283 - 283 Park improvements 115,812 - 115,812 Drug and alcohol law enforcement 566,249 - 566,249 Home buyer purchase assistance program 139,857 - 139,857 Unrestricted 448,607 5,873,484 6,322,091 Total Net Position 33,961,032$ 25,278,271$ 59,239,303$ The notes to the financial statements are an integral part of this statement. DRAFT 33 City of Orono, Minnesota Statement of Activities For the Year Ended December 31, 2021 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Governmental Activities General government 1,572,281$ 1,225,915$ -$ -$ Public safety 5,445,046 2,798,742 544,474 - Public works 1,705,585 849,480 - 239,565 Parks and recreation 731,394 175,232 6,000 33,880 Community development 59,265 - - - Interest on long-term debt 359,970 - - - Total Governmental Activities 9,873,541 5,049,369 550,474 273,445 Business-type Activities Water 1,110,702 1,616,435 - 3,292 Sewer 1,676,642 2,232,546 - 257,655 Storm water 310,626 715,037 - 103,868 Recycling 232,165 234,732 15,982 - Cable television 100,970 74,787 - - Total Business-type Activities 3,431,105 4,873,537 15,982 364,815 Total 13,304,646$ 9,922,906$ 566,456$ 638,260$ General Revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Tax increments Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers - Internal Activities Total General Revenues and Transfers Change in Net Position Net Position, January 1 Net Position, December 31 Functions/Programs Program Revenues The notes to the financial statements are an integral part of this statement. DRAFT 34 Governmental Business-type Activities Activities Total (346,366)$ -$ (346,366)$ (2,101,830) - (2,101,830) (616,540) - (616,540) (516,282) - (516,282) (59,265) - (59,265) (359,970) - (359,970) (4,000,253) - (4,000,253) - 509,025 509,025 - 813,559 813,559 - 508,279 508,279 - 18,549 18,549 - (26,183) (26,183) - 1,823,229 1,823,229 (4,000,253) 1,823,229 (2,177,024) 5,971,231 - 5,971,231 580,322 - 580,322 145,895 - 145,895 1,784 - 1,784 (6,927) (17,927) (24,854) 48,388 - 48,388 212,500 (212,500) - 6,953,193 (230,427) 6,722,766 2,952,940 1,592,802 4,545,742 31,008,092 23,685,469 54,693,561 33,961,032$ 25,278,271$ 59,239,303$ Changes in Net Position Net (Expenses) Revenues and The notes to the financial statements are an integral part of this statement. DRAFT 35 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 36 FUND FINANCIAL STATEMENTS CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 37 City of Orono, Minnesota Balance Sheet Governmental Funds December 31, 2021 Municipal 2010 State Aid General Obligation General Street Bond Assets Cash and temporary investments 3,602,033$ (1,413)$ (877,341)$ 614,547$ Receivables Accrued interest 1,001 - 909 - Taxes 69,606 - - 22,521 Accounts 119,037 - - - Special assessments - - - - Due from other governments 150,056 495,625 (696) 12,066 Due from other funds 3,097,041 - - - Prepaid items 37,176 - - - Inventories 3,494 - - - Total Assets 7,079,444$ 494,212$ (877,128)$ 649,134$ Liabilities Accounts and contracts payable 118,922$ -$ -$ 92,486$ Accrued salaries payable 101,667 - - - Due to other governments 80,022 - - - Due to other funds - 1,812,089 - 1,284,952 Deposits payable 1,592,377 - - - Unearned revenue 456,277 - - 23,217 Total Liabilities 2,349,265 1,812,089 - 1,400,655 Deferred Inflows of Resources Unavailable revenues - delinquent taxes 69,606 - - 22,521 Unavailable revenues - special assessments - - - - Unavailable revenues - intergovernmental - 495,625 - - Total Deferred Inflows of Resources 69,606 495,625 - 22,521 Fund Balances Nonspendable 40,670 - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned 4,619,903 (1,813,502) (877,128) (774,042) Total Fund Balances 4,660,573 (1,813,502) (877,128) (774,042) Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,079,444$ 494,212$ (877,128)$ 649,134$ Pavement Management Plan The notes to the financial statements are an integral part of this statement. DRAFT 38 Other Total Governmental Governmental Funds Funds 15,782,400$ 5,141,653$ 24,261,879$ - 8,520 10,430 - 22,310 114,437 - - 119,037 - 24,017 24,017 4,980 10,314 672,345 - 601,467 3,698,508 - - 37,176 - - 3,494 15,787,380$ 5,808,281$ 28,941,323$ 8,868$ 113,237$ 333,513$ - - 101,667 - - 80,022 - 601,467 3,698,508 - - 1,592,377 - - 479,494 8,868 714,704 6,285,581 - 22,310 114,437 - 24,017 24,017 - - 495,625 - 46,327 634,079 - - 40,670 15,471,639 3,089,869 18,561,508 - 38,712 38,712 306,873 2,938,363 3,245,236 - (1,019,694) 135,537 15,778,512 5,047,250 22,021,663 15,787,380$ 5,808,281$ 28,941,323$ Project Construction Fund The notes to the financial statements are an integral part of this statement. DRAFT 39 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 40 City of Orono, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2021 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental Funds 22,021,663$ Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 45,481,226 Less: accumulated depreciation (10,391,533) Internal service funds are used by the City to charge the cost of compensated absences, liability, property, and workers compensation insurance, vehicles and equipment, centralized purchase of consumable office supplies, maintaining facilities, and maintenance of computer systems. These balances are reported with governmental activities on the statement of net position.747,255 Noncurrent liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of Compensated absences payable (628,904) Bonds payable (18,385,000) Plus premium on bonds issued (745,874) Other postemployment benefits payable (894,628) Net pension liability (2,515,527) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes 114,437 Special assessments 24,017 Intergovernmental 495,625 Governmental funds do not report long-term amounts related to pensions and OPEB. Deferred outflows other postemployment benefit resources 129,109 Deferred inflows other postemployment benefit resources (149,243) Deferred outflows of pension resources 3,786,052 Deferred inflows of pension resources (5,090,758) Governmental funds do not report a liability for accrued interest until due and payable.(36,885) Total Net Position - Governmental Activities 33,961,032$ The notes to the financial statements are an integral part of this statement. DRAFT 41 City of Orono, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2021 Municipal 2010 State Aid Gneral Obligation General Street Bond Revenues Taxes 4,914,877$ -$ 5,537$ 743,555$ Special assessments - - - - Licenses and permits 611,442 - - - Intergovernmental 546,258 110,209 11,469 - Charges for services 3,782,381 - - 134,522 Fines and forfeitures 86,973 - - - Investment earnings (12,716) (1,413) 500 - Miscellaneous 41,833 - - - Total Revenues 9,971,048 108,796 17,506 878,077 Expenditures Current General government 1,348,363 - - - Public safety 5,856,673 - - - Public works 811,636 - - - Parks and recreation 583,256 - - - Community development - - - - Capital outlay Public safety 305,671 - - Public works - - - 1,443,846 Parks and recreation - - - - Debt service Principal - - 1,425,000 - Interest and other charges - - - - Bond issuance costs - - 63,838 - Total Expenditures 8,905,599 - 1,488,838 1,443,846 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,065,449 108,796 (1,471,332) (565,769) Other Financing Sources (Uses) Transfers in - - - 614,547 Proceeds from sale of capital assets 31,388 - - - Transfers out (983,297) - - - Bonds issued - - - - Premium on bonds issued - - - - Total Other Financing Sources (Uses)(951,909) - - 614,547 Net Change in Fund Balances 113,540 108,796 (1,471,332) 48,778 Fund Balances, January 1 4,547,033 (1,922,298) 594,204 (822,820) Fund Balances, December 31 4,660,573$ (1,813,502)$ (877,128)$ (774,042)$ Pavement Management Plan The notes to the financial statements are an integral part of this statement. DRAFT 42 Other Total Governmental Governmental Funds Funds 306,873$ 720,680$ 6,691,522$ - 35,759 35,759 - 170,200 781,642 - 380,076 1,048,012 - 25,095 3,941,998 - 157,471 244,444 6,702 (6,927) - 10,538 52,371 306,873 1,506,521 12,788,821 - - 1,348,363 - 715 5,857,388 - - 811,636 - 53,011 636,267 - 59,265 59,265 - - 305,671 270,221 340,897 2,054,964 - 531,906 531,906 - 725,000 2,150,000 - 87,476 87,476 262,063 - 325,901 532,284 1,798,270 14,168,837 (225,411) (291,749) (1,380,016) - 581,250 1,195,797 - - 31,388 - - (983,297) 15,350,000 - 15,350,000 653,923 - 653,923 16,003,923 581,250 16,247,811 15,778,512 289,501 14,867,795 - 4,757,749 7,153,868 15,778,512$ 5,047,250$ 22,021,663$ Project Construction Fund The notes to the financial statements are an integral part of this statement. DRAFT 43 City of Orono, Minnesota Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2021 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances - Governmental Funds 14,867,795$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 2,578,953 Depreciation expense (1,066,114) Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the disposition of the assets book value is included in the total gain (loss) in the statement of activities.17,000 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are amortized in the statement of activities. Principal repayments 2,150,000 Bonds issued (15,350,000) Current year amortization of deferred charges 25,950 Premium on bonds issued (653,923) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.27,457 Internal service funds are used by the City to charge the cost of compensated absences, liability, property, and workers compensation insurance, vehicles and equipment, centralized purchase of consumable office supplies, maintaining facilities, and maintenance of computer systems. These balances are reported with governmental activities in the statement of activities.(31,062) Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments (12,816) Property taxes 5,926 Intergovernmental (251,196) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences (22,147) Other postemployment benefits (24,336) Long-term pension activity is not reported in governmental funds. Pension expense 656,595 Pension revenue from State contributions 34,858 Change in Net Position - Governmental Activities 2,952,940$ The notes to the financial statements are an integral part of this statement. DRAFT 44 City of Orono, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2021 Actual Variance with Original Final Amounts Final Budget Revenues Taxes 4,936,140$ 4,936,140$ 4,914,877$ (21,263)$ Licenses and permits 532,200 532,200 611,442 79,242 Intergovernmental 268,000 268,000 546,258 278,258 Charges for services 3,350,460 3,350,460 3,782,381 431,921 Fines and forfeitures 70,100 70,100 86,973 16,873 Investment earnings 70,500 70,500 (12,716) (83,216) Miscellaneous Rents and refunds 5,400 5,400 5,850 450 Other 7,700 7,700 35,983 28,283 Total Revenues 9,240,500 9,240,500 9,971,048 730,548 Expenditures Current General government 1,455,850 1,455,850 1,348,363 107,487 Public safety 5,868,700 5,868,700 5,856,673 12,027 Public Works 833,200 833,200 811,636 21,564 Parks and recreation 512,750 512,750 583,256 (70,506) Capital Outlay Public safety 190,000 190,000 305,671 (115,671) Total Expenditures 8,860,500 8,860,500 8,905,599 (45,099) Excess of Revenues Over Expenditures 380,000 380,000 1,065,449 685,449 Other Financing Sources (Uses) Proceeds from sale of capital assets 20,000 20,000 31,388 11,388 Transfers out (400,000) (400,000) (983,297) (583,297) Total Financing Sources (Uses)(380,000) (380,000) (951,909) (571,909) Net Change in Fund Balances - - 113,540 113,540 Fund Balances, January 1 4,547,033 4,547,033 4,547,033 - Fund Balances, December 31 4,547,033$ 4,547,033$ 4,660,573$ 113,540$ Budgeted Amounts The notes to the financial statements are an integral part of this statement. DRAFT 45 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Assets Current Assets Cash and temporary investments 883,219$ 3,119,705$ 1,954,420$ 63,871$ 6,021,215$ 837,238$ Receivables Accrued interest 664 3,812 1,437 448 6,361 1,131 Accounts 75,780 231,979 87,472 44,447 439,678 - Special assessments 37,233 80,613 - - 117,846 - Due from other governments - 4,199 - - 4,199 - Inventories 14,779 - - - 14,779 - Prepaid items - 59,037 - - 59,037 44,916 Total Current Assets 1,011,675 3,499,345 2,043,329 108,766 6,663,115 883,285 Noncurrent Assets Capital assets Land 55,052 24,654 6,368 - 86,074 - Construction in progress - 228,049 17,009 - 245,058 - Buildings and systems 1,670,843 32,968 - - 1,703,811 - Land Improvements 7,143 - - - 7,143 - Distribution/collection system 6,498,079 20,309,868 2,539,346 - 29,347,293 - Machinery and equipment 100,444 654,570 245,870 238,311 1,239,195 - Total Capital Assets 8,331,561 21,250,109 2,808,593 238,311 32,628,574 - Less accumulated depreciation (3,343,867) (8,668,425) (423,170) (53,679) (12,489,141) - Net Capital Assets 4,987,694 12,581,684 2,385,423 184,632 20,139,433 - Total Assets 5,999,369 16,081,029 4,428,752 293,398 26,802,548 883,285 Deferred Outflows of Resources Deferred pension resources 79,424 68,974 24,495 20,045 192,938 - Deferred other postemployment benefits resources 7,569 10,350 5,484 - 23,403 - Total Deferred Outflows of Resources 86,993 79,324 29,979 20,045 216,341 - Business-type Activities - Enterprise Funds City of Orono, Minnesota Statement of Net Position (Continued on the Following Page) Proprietary Funds December 31, 2021 The notes to the financial statements are an integral part of this statement. DRAFT 46 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Liabilities Current Liabilities Accounts and contracts payable 40,107$ 264,078$ 1,592$ 14,511$ 320,288$ 22,145$ Accrued salaries payable 4,997 3,987 1,012 540 10,536 1,692 Due to other governments 8,328 8,939 - - 17,267 - Accrued interest payable 7,513 - - - 7,513 - Deposits payable 7,000 - - - 7,000 - Compensated absences payable - current portion 8,079 7,199 25,724 - 41,002 - Bond premium - current portion 1,485 - - - 1,485 Bonds payable - current portion 85,000 - - - 85,000 - Total Current Liabilities 162,509 284,203 28,328 15,051 490,091 23,837 Noncurrent Liabilities Bond premium 9,646 - - - 9,646 Bonds payable 640,000 - - - 640,000 - Compensated absences payable 2,410 1,043 786 - 4,239 - Net pension liability 110,810 96,229 34,174 27,965 269,178 - Other postemployment benefits payable 52,449 71,716 37,999 - 162,164 - Total Noncurrent Liabilities 815,315 168,988 72,959 27,965 1,085,227 - Total Liabilities 977,824 453,191 101,287 43,016 1,575,318 23,837 Deferred Inflows of Resources Deferred pension resources 103,095 89,530 31,795 26,020 250,440 - Deferred other postemployment benefit resources 8,750 11,964 6,339 - 27,053 - Total Deferred Inflows of Resources 111,845 101,494 38,134 26,020 277,493 - Net Position Net investment in capital assets 4,253,048 12,581,684 2,385,423 184,632 19,404,787 - Unrestricted 743,645 3,023,984 1,933,887 43,793 5,745,309 859,448 Total Net Position 4,996,693$ 15,605,668$ 4,319,310$ 228,425$ 25,150,096 859,448$ Some amounts reported for business-type activities in the statement of net position are different because certain internal service fund assets and liabilities are included with business-type activities 112,193 25,262,289$ City of Orono, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2021 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. DRAFT 47 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 48 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Operating Revenues Charges for services 1,605,511$ 2,229,327$ 714,953$ 299,301$ 4,849,092$ 412,907$ Other - - - - - 391,438 Total Operating Revenues 1,605,511 2,229,327 714,953 299,301 4,849,092 804,345 Operating Expenses Personnel services 238,073 215,698 76,633 60,656 591,060 271,635 Supplies 54,229 6,793 4,358 462 65,842 12,755 Professional services 53,661 57,798 26,653 234,852 372,964 175,979 Utilities 105,017 36,110 - - 141,127 - Repairs and maintenance 208,507 105,730 12,181 - 326,418 190,961 Depreciation 219,349 364,023 61,899 16,395 661,666 - Administrative charges from the General Fund 111,318 111,318 55,659 2,515 280,810 - Insurance 7,800 17,500 4,375 - 29,675 208,186 Other 87,725 750,302 65,573 16,497 920,097 - Total Operating Expenses 1,085,679 1,665,272 307,331 331,377 3,389,659 859,516 Operating Income (Loss)519,832 564,055 407,622 (32,076) 1,459,433 (55,171) Nonoperating Revenues (Expenses) Investment earnings (3,639) (7,953) (6,007) (328) (17,927) (658) Miscellaneous revenues 10,924 3,219 84 10,218 24,445 - Interest and amortization expense (16,679) - - - (16,679) - Total Nonoperating Revenues (Expenses)(9,394) (4,734) (5,923) 9,890 (10,161) (658) Income (Loss) Before Contributions and Transfers 510,438 559,321 401,699 (22,186) 1,449,272 (55,829) Contributions and Transfers Capital Contributions 3,292 4,795 - - 8,087 - Connection fee - 252,860 103,868 - 356,728 - Transfers Out (68,750) (143,750) - - (212,500) - Total Transfers and Contributions (65,458) 113,905 103,868 - 152,315 - Change in Net Position 444,980 673,226 505,567 (22,186) 1,601,587 (55,829) Net Position - January 1 4,551,713 14,932,442 3,813,743 250,611 23,548,509 915,277 Net Position, December 31 4,996,693$ 15,605,668$ 4,319,310$ 228,425$ 25,150,096$ 859,448$ Change in net position as shown above 1,601,587$ (24,767) Change in net position - business-type activities 1,576,820$ Adjustment to reflect the consolidation of internal service fund activities to the enterprise funds. City of Orono, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. DRAFT 49 Governmental Activities - Internal Water Sewer Storm Other Business-type Total Service Funds Cash Flows from Operating Activities Receipts from customers and users 1,603,834$ 2,229,106$ 655,984$ 282,332$ 4,771,256$ 804,345$ Other operating receipts 10,924 3,219 84 10,218 24,445 - Payments to suppliers (635,170) (840,506) (178,898) (239,815) (1,894,389) (582,558) Payments to employees (277,605) (251,399) (92,532) (64,212) (685,748) (271,155) Net Cash Provided (Used) by Operating Activities 701,983 1,140,420 384,638 (11,477) 2,215,564 (49,368) Cash Flows from Noncapital Financing Activities Transfers to other funds (68,750) (143,750) - - (212,500) - Cash Flows from Capital and Related Financing Activities Connection fees received - 252,860 103,868 - 356,728 - Special assessments received 8,624 23,576 - - 32,200 - Acquisition of capital assets (200,277) (1,074,511) (21,399) - (1,296,187) - Interest paid on debt (18,831) - - - (18,831) - Principal paid on bonds (80,000) - - - (80,000) - Net Cash Used by Capital and Related Financing Activities (290,484) (798,075) 82,469 - (1,006,090) - Cash Flows from Investing Activities Investment receipts (3,639) (5,766) (4,803) (282) (14,490) (115) Net Increase (Decrease) in Cash and Cash Equivalents 339,110 192,829 462,304 4,223 998,466 (49,483) Cash and Cash Equivalents, January 1 544,109 2,926,876 1,492,116 59,648 5,022,749 886,721 Cash and Cash Equivalents, December 31 883,219$ 3,119,705$ 1,954,420$ 63,871$ 6,021,215$ 837,238$ City of Orono, Minnesota Statement of Cash Flows (Continued on the Following Page) Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. DRAFT 50 Governmental Activities - Internal Water Sewer Storm Other Business-type Total Service Funds Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss)519,832$ 564,055$ 407,622$ (32,076)$ 1,459,433$ (55,171)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 219,349 364,023 61,899 16,395 661,666 - Other income related to operations 10,924 3,219 84 10,218 24,445 - (Increase) decrease in assets/deferred outflows of resources Accounts receivable (2,102) 1,423 (58,969) (16,969) (76,617) - Special Assessments - - - - - - Due from other governments 425 (1,644) - - (1,219) - Inventories (438) - - - (438) - Prepaid items - (59,037) - - (59,037) (6,864) Deferred OPEB resources (2,961) (4,471) (2,469) - (9,901) - Deferred pension resources (58,104) (47,727) (14,245) (15,110) (135,186) - Increase (decrease) in liabilities/deferred inflows of resources Accounts and contracts payable (6,099) 304,010 (10,099) 14,511 302,323 12,187 Accrued salaries payable 1,401 803 (629) 150 1,725 480 Due to other governments (376) 72 - - (304) - Compensated absences payable (28,405) (8,709) 13,090 - (24,024) - Net pension liability (65,345) (79,323) (50,518) (12,810) (207,996) - Other postemployment benefits payable 18,591 21,973 10,829 - 51,393 - Deferred pension resources 95,291 81,753 28,043 24,214 229,301 - Net Cash Provided (Used) by Operating Activities 701,983$ 1,140,420$ 384,638$ (11,477)$ 2,215,564$ (49,368)$ Schedule of Noncash Capital and Related Financing Activities Amortization of bond premium 1,485$ -$ -$ -$ 1,485$ -$ Business-type Activities - Enterprise Funds For the Year Ended December 31, 2021 City of Orono, Minnesota Statement of Cash Flows (Continued) Proprietary Funds The notes to the financial statements are an integral part of this statement. DRAFT 51 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 52 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Orono (the City) operates under the State of Minnesota Statutory Plan A form of government. Under this plan, the City Council, composed of an elected mayor and four elected trustees or council members, exercises legislative authority and determines all matters of policy. The City Administrator, appointed by the City Council, is responsible for the proper administering of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of their operational or financial relationships with the City. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burd ens on the primary government. Included in the City’s reporting entity, based upon the application of these criteria, is the following blended component unit. Blended Component Unit The Orono Housing and Redevelopment Authority (Orono HRA) is a legally separate organization created in accordance with Minnesota Statute § 469.003. Its purpose is to clear and redevelop blighted areas within the City and to provide adequate housing for low- and moderate-income residents. The Orono HRA is fiscally dependent upon the City, and its governing board consists of the City’s mayor and council members. Therefore, the Orono HRA has been reported as a blended component unit of the City, with its funds reported as though they are funds of the City. The financial activity at this time is limited to debt payments within the Orono HRA debt service funds, namely the public facilities and project revenue bonds. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses o f a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. DRAFT 53 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences , pensions, and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, mat ching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amo unts and disclosures. Accordingly, actual results could differ from those estimates. DRAFT 54 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) The City reports the following major governmental fund s: The General fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid streets and highways. The 2010 General Obligation Bond fund is used to collect and spend resources related to bonds issued in 2010. The Pavement Management Plan fund collects and allocates resources related to the repair and maintenance of roads within the city. The Project Construction fund is used to collect and spend resources related to various construction projects within the city. The City reports the following major proprietary funds: The Water fund and the Sewer fund account for activities related to the operation of a water distribution system and a sanitary sewer distribution system, respectively. The Sewer Fund is used to account for the provision of water services to the residents of the City who have sanita ry sewer service available. The Storm Water Fund is used to account for the charges for and the costs of maintaining the City’s storm water system. The City’s proprietary funds also include the following: Internal service funds account for insurance, compensated absences, fleet management, and IT services provided to other departments or agencies of the City. These funds are used to account for the insurance costs incurred by the City for general liability, property, vehicle, workers’ compensation, and other insurance and deductibles, the accrual of sick and vacation days that are earned by the City’s employees, repairs and maintenance costs of the City’s vehicles, and IT services provided to various City functions. These funds a re reimbursed through charges to the various participating departments of the City. As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes, payments where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City’s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct cost s and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. DRAFT 55 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments Cash balances from all funds are combined and invested to the extent available in short term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rat ing categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations rated “AA” or better. 4. General obligations of the Minnesota Housing Finance Agency rated “A” or better. 5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 9. Guaranteed Investment Contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Leve l 3 inputs are significant unobservable inputs. DRAFT 56 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) The City has the following recurring fair value measurements as of December 31, 2021: • Negotiable certificates of deposits and municipal bonds of $8,966,537 are valued using a matrix pricing model (Level 2 inputs) Property Taxes Property taxes are submitted to the County Auditor by December of each year, to be levied on January 1 on property values assessed as of the same date. The tax levy notice is mailed in March with the first half payment due on May 15 and the second half payment due on October 15. Unpaid taxes at December 31 become liens on the respective property and are classified in the fund financial statements as delinquent taxes receivable. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the governmental fund financial statements. Accounts Receivable All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2021. The City annually certifies delinquent water, sewer, storm water and nuisance accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables are assessable to the property taxes and are collectible upon the sale of the assessed property. Due From Other Governments The amounts due from other government primarily include amounts for project cost in which the City is receiving grants to support the projects. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. At December 31, 2021, the total delinquent special assessment receivable balance is $27,597. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business -type activities are reported in the government-wide financial statements as “internal balances.” DRAFT 57 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Inventories and Prepaid Items All inventories are valued at cost using the first in/first out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. Capital Assets Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their acquisition value at the date of donation. The City defines capital assets as those with an initial, individual cost of $5,000 or more for government -wide and $5,000 for proprietary funds with an estimated useful life in excess of one year. The cost of normal maintenance and repairs that do not a dd to the value of the asset or materially extend asset lives are not capitalized. As allowed by accounting principles generally accepted in the United States of America, the City has elected not to retroactively capitalize the infrastructure of its governmental activities acquired prior to January 1, 2004. Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not reported in the governmental fund financial statements. Capital assets are depreciated using the straight-line method over their estimated useful lives. Land and construction in progress are not depreciated. Property, plant and equipment of the City is depreciated using the straight line method over the following estimated useful lives: Useful Life Assets in Years Infrastructure 20 - 50 Buildings and Systems 15 - 50 Improvements Other Than Buildings 20 - 50 Machinery and Equipment 5 - 10 Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has only one item that qualifies for reporting in this category. Accordingly, the item, deferred p ension resources, is reported only in the statements of net position. This item results from actuarial calculations and current year pension contributions made subsequent to the measurement date. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the measurement dates DRAFT 58 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences Certain City employees earn personal time off, vacation, compensation time, and sick leave at various rates based on longevity. These compensated absences are paid to an employee leaving in good standing, at their current rate of pay, with the exception of sick leave in which one-half is paid to the departing employee. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For the most part, the General fund is typically used to liquidate governmental compensated absences payable. Postemployment Benefits other than Pensions Under Minnesota statute 471.61, subdivision 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees are able to add dependent coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as- you-go basis. The liability was determined, in accordance with GASB Statement No. 75, at January 1, 2020. The General fund is typically used to liquidate governmental other pos temployment benefits payable. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In accordance with federal regulations, the City’s general obligation tax exempt bonds follow the arbitrage requirements. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For the most part, the General fund is typically used to liquidate governmental pension liabilities. The City participates in various pension plans, total pension expense for the year ended December 31, 2021 is as follows: Total All GERP PEPFF Plans Pension Expense (Revenue)20,879$ (183,367)$ (162,488)$ Association of Minnesota (PERA) Public Employees Retirement DRAFT 59 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Deferred Inflows of Resources In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items, which arise only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, one of the items, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, special assessments and intergovernmental. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Furthermore, the City has additional items which qualify for reporting in this category on t he statement of net position. The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actual earnings on plan investments and changes in proportions. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. a. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. b. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets”. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. DRAFT 60 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City’s highest level of decision -making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - These are amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. Pursuant to the Fund Balance Policy approved by City Council, the City Administrator has been delegated the authority to assign and remove assignments of fund balance amounts for specific purposes. Unassigned - These are residual amounts in the General fund not reported in any other classification. The General fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target unassigned fund balance of 45% of the fund’s annual operating budget. Unassigned fund balance in excess of 50% will be transferred to the Pavement Management Plan Fund pursuant to Council approval Note 2: Stewardship, Compliance and Accountability A. Budgetary Information Each fall, after holding a meeting to obtain public comments, the City Council legally adopts the General Fund and any major special revenue funds. These budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The City has established budgetary control at the department level. City management must request City Council approval before exceeding the budget at that level. City management may transfer appropriations within the department level without City Council approval. Appropriations lapse at year-end; however, the City Council may approve the carryover of specific amounts. Encumbrance accounting is not used. DRAFT 61 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 2: Stewardship, Compliance and Accountability (Continued) B. Deficit Fund Equity The following fund had a fund equity deficit at December 31, 2021: Amount Major Municipal State Aid Street 1,813,502$ 2010 General Obligation Bond 877,128 Pavement Management Plan 774,042 Nonmajor Governmental Park 526,471 New TIF 2,400 Senior Housing TIF 490,823 Fund The fund deficits are expected to be eliminated with future fund revenues or transfers from other funds. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and • Time deposits that are fully insured by any federal agency. DRAFT 62 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by t he government entity. At year end, the City’s carrying amount of deposits was a negative $201,636 and the bank balance was $223,517. The bank balance was covered by federal depository insurance. Investments The Minnesota Municipal Money Market Fund (the 4M Fund) is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a unique investment alternative designed to address the daily and long -term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top quality, rated investments. The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. At year end, the City’s investment balances were as follows: Credit Segmented Quality/Time Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs Broker Money Market Funds N/A less than 6 months 2,585,430$ 4M fund N/A less than 6 months 19,350,747 Non-pooled Investments at Fair Value Negotiable Certificates of Deposits N/A less than 1 year 1,245,037 -$ 1,245,037$ -$ Negotiable Certificates of Deposits N/A 1 to 3 years 2,451,347 - 2,451,347 - Negotiable Certificates of Deposits N/A more than 3 years 1,718,550 - 1,718,550 - Municipal Bonds AAA 1 to 3 years 1,282,623 - 1,282,623 - Municipal Bonds AAA more than 3 years 2,268,980 - 2,268,980 - Total Investments 30,902,714$ -$ 8,966,537$ -$ Types of Investments Fair Value Measurement Using (1) Ratings are provided by Standard & Poor’s where applicable to indicate associated credit risk. (2) Interest rate risk in disclosed using the segmented time distribution method. N/A Indicates not applicable or available. DRAFT 63 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) The investments of the City are subject to the following risks: •Interest Rate Risk - Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy also provides a guideline that generally limits the duration of investments to a maturity of eight years, and twenty percent (20 percent) of the portfolio to a specific maturity. The City was not exposed to interest rate risks due to the fact that their investments are not exposed to highly sensitive changes in interest rates. •Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list on page 56 of the notes to the financial statements. In accordance with its investment policy, the City will minimize credit risk by limiting investments to the safest types of securities, pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business, and diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. The City’s investment policies do not allow investing in the following instruments: •Reverse repurchase agreements •Mortgage-backed securities, as defined in Minnesota Statute § 118A.04, Subd. 6 •Future contracts •Options •Guaranteed investment contracts •Concentration of Credit Risk - Concentration of credit risk is defined as positions of five percent (5 percent) or more in the securities of a single issuer. The City’s investment policies provide a guideline of limiting investments to 35% of a specific type. As of December 31, 2021, the following issuer exceeded 5 percent of the City’s total investments: MN Municipal Money Markets (4M) (63 percent). •Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. Minnesota statutes and the City's investment policy states that in order to provide a level of security for all funds, the collateralization level will be 110 percent of market value not covered by insurance. The City’s investment policies further limit depositories to those located in the state of Minnesota, and must have a minimum capital and surplus of $10,000,000 and a net worth to asset ratio minimum of 5 percent, except for the City’s main checking account at the First National Bank of the Lakes, Navarre. As of December 31, 2021, all of the City's bank balance was covered by federal depository insurance or by perfected collateral held by the City's agent in the City's name. •Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. As of December 31, 2021, all securities were held by the City or its agent in the City's name. The City typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. City investment policies require that security/broker/dealers be restricted to those regulated by the Securities and Exchange Commission, have a minimum capital of $40,000,000 and may include “primary” dealers or regional dealers, and are located in Minnesota. The City limits the amount of investments with a specific dealer to 30 percent of the investment portfolio. DRAFT 64 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: Carrying Amount of Deposits 201,636$ Investments 30,902,714 Total 31,104,350$ B.Capital Assets Capital asset activity for the year ended December 31, 2021 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated Land 7,677,435$ -$ -$ 7,677,435$ Construction in progress 2,077,173 1,780,607 (1,751,519) 2,106,261 Total Capital Assets not Being Depreciated 9,754,608 1,780,607 (1,751,519) 9,783,696 Capital Assets Being Depreciated Infrastructure 15,682,035 1,287,795 - 16,969,830 Buildings and systems 9,187,905 - - 9,187,905 Improvements other than buildings 3,040,716 858,920 - 3,899,636 Machinery and equipment 5,334,297 420,150 (114,288) 5,640,159 Total Capital Assets Being Depreciated 33,244,953 2,566,865 (114,288) 35,697,530 Less Accumulated Depreciation for Infrastructure (3,333,942) (392,164) - (3,726,106) Buildings and systems (1,429,611) (187,340) - (1,616,951) Improvements other than buildings (1,718,517) (99,928) - (1,818,445) Machinery and equipment (2,957,637) (386,682) 114,288 (3,230,031) Total Accumulated Depreciation (9,439,707) (1,066,114) 114,288 (10,391,533) Depreciated, Net 23,805,246 1,500,751 - 25,305,997 Governmental Activities Capital Assets, Net 33,559,854$ 3,281,358$ (1,751,519)$ 35,089,693$ Total Capital Assets Being DRAFT 65 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Depreciation expense was charged to functions of the governmental activities as follows: Governmental Activities General Government 230,484$ Public Safety 209,714 Public Works 536,460 Culture and Recreation 89,456 Total Depreciation Expense - Governmental Activities 1,066,114$ Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets not Being Depreciated Land 86,074$ -$ -$ 86,074$ Construction in progress 387,468 1,074,493 (1,216,903) 245,058 Total Capital Assets not Being Depreciated 473,542 1,074,493 (1,216,903) 331,132 Capital Assets Being Depreciated Buildings and systems 1,703,811 - - 1,703,811 Land Improvements 7,143 - - 7,143 Machinery and equipment 1,228,730 10,465 - 1,239,195 Distribution/collection system 28,140,854 1,206,439 - 29,347,293 Total Capital Assets Being Depreciated 31,080,538 1,216,904 - 32,297,442 Less Accumulated Depreciation for Buildings and systems (626,876) (69,766) - (696,642) Land Improvements (6,381) (1,028) - (7,409) Machinery and equipment (625,734) (57,569) - (683,303) Distribution/collection system (10,568,484) (533,303) - (11,101,787) Total Accumulated Depreciation (11,827,475) (661,666) - (12,489,141) Total Capital Assets Being Depreciated, Net 19,253,063 555,238 - 19,808,301 Business-type Activities Capital Assets, Net 19,726,605$ 1,629,731$ (1,216,903)$ 20,139,433$ DRAFT 66 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Depreciation expense was charged to programs of the business-type activities as follows: Business-type Activities Water 219,349$ Sewer 364,023 Golf Course 61,899 Cable 16,395 Total Depreciation Expense - Business-type Activities 661,666$ C. Interfund Receivables, Payables and Transfers The composition of interfund balances at December 31, 2021 is as follows: Purpose Amount General Fund Pavement Management Plan To provide cash flows 1,284,952$ General Fund Municipal State Aid Street To provide cash flows 1,812,089 Senior Housing TIF HRA General Fund Loan for Land Purchase 601,467 Total 3,698,508$ Payable FundReceivable Fund The City made transfers during the fiscal year 2021 as shown and described below: Nonmajor Governmental Total Transfer Out General 983,297$ 614,547$ 1,597,844$ Pavement Management Plan - - - Nonmajor Governmental - - - Water 68,750 - 68,750 Sewer 143,750 - 143,750 Total 1,195,797$ 614,547$ 1,810,344$ Pavement Management Plan Transfer In • The General fund transferred $368,750 to the Nonmajor Governmental funds for future capital purchases and to Nonmajor Governmental funds. • The Water and Sewer funds transferred $68,750 and $143,750, respectively, to the Nonmajor Governmental funds for future debt service and capital funding. • The General fund transferred $614,547 to the Pavement Management Plan fund to move excess fund balance for future improvements DRAFT 67 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) D.Long-term Debt General Obligation Improvement (G.O.) Bonds The bonds were issued to finance various improvements and will be repaid from taxes, special assessments and pledged revenues. Authorized Issue Maturity Balance at and Issued Date Date Year End Governmental Activites G.O. Improvement Bonds, Series 2021A 15,350,000$ 2.00 - 3.00 %12/31/21 12/31/51 15,350,000$ G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 02/01/29 2,010,000 Street Reconstruction Refunding Bonds, Series 2016A 3,505,000 2.00 - 3.00 12/11/17 02/01/23 1,025,000 Total G.O. Inmprovement Bonds 18,385,000$ Business Activites G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 02/01/29 725,000$ Interest RateDescription Annual debt service requirements to maturity for G.O. improvement bonds are as follows: Year Ending December 31,Principal Interest Total 2022 735,000$ 475,226$ 1,210,226$ 2023 1,095,000 461,438 1,556,438 2024 595,000 430,582 1,025,582 2025 615,000 401,619 1,016,619 2026 635,000 371,394 1,006,394 2027 - 2031 2,950,000 1,497,151 4,447,151 2032 - 2036 2,525,000 1,098,220 3,623,220 2037 - 2041 2,775,000 835,720 3,610,720 2042 - 2046 3,065,000 546,920 3,611,920 2047 - 2051 3,395,000 219,399 3,614,399 Total 18,385,000$ 6,337,669$ 24,722,669$ Governmental Activities Year Ending December 31,Principal Interest Total 2022 85,000$ 17,181$ 102,181$ 2023 85,000 15,428 100,428 2024 85,000 13,569 98,569 2025 90,000 11,544 101,544 2026 90,000 9,350 99,350 2027 - 2029 290,000 12,725 302,725 Total 725,000$ 79,797$ 804,797$ Business-type Activities DRAFT 68 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2021 was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable G.O. improvement bonds 5,185,000$ 15,350,000$ (2,150,000)$ 18,385,000$ 735,000$ Bond premium 117,901 653,923 (25,950) 745,874 47,747 Total Bonds Payable 5,302,901 16,003,923 (2,175,950) 19,130,874 782,747 Compensated Absences Payable 606,757 569,989 (547,842) 628,904 569,989 Governmental Activity Long-term Liabilities 5,909,658$ 16,573,912$ (2,723,792)$ 19,759,778$ 1,352,736$ Business-type Activities Bonds Payable G.O. improvement bonds 805,000$ -$ (80,000)$ 725,000$ 85,000$ Bond premium 12,616 (1,485) 11,131 1,485 Total Bonds Payable 817,616 - (81,485) 736,131 86,485 Compensated Absences Payable 69,265 41,002 (65,026) 45,241 41,002 Business-type Activity Long-term Liabilities 886,881$ 41,002$ (146,511)$ 781,372$ 127,487$ DRAFT 69 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) E. Components of Fund Balance Fund equity balances are classified below to reflect the limitations and restrictions of the respective funds. Municipal 2010 State Aid General Obligation Other General Street Bond Governmental Total Nonspendable Prepaid items $ 37,176 $ - $ - $ - $ 37,176 Inventory 3,494 - - - 3,494 Total Nonspendable 40,670 - - - 40,670 Restricted for Debt service - - - - - 1,666,201 1,666,201 Building Projects - - - - 15,471,639 - 15,471,639 Drug and Alcohol Law Enforcement - - - - - 566,249 566,249 Home Buyer Purchase Assistance - - - - - 139,857 139,857 Lurton Park Development and Maintenance - - - - - 9,591 9,591 Golf Course Improvements - - - - - 283 283 Big Island Improvements - - - - - 88,825 88,825 Other Improvements - - - - - 17,396 17,396 HRA General Fund - - - - - 601,467 601,467 Total Restricted - - - 15,471,639 3,089,869 18,561,508 Committed to Park maintnence - - - - - 38,712 38,712 Assigned to Capital improvements - - 306,873 2,938,363 3,245,236 Unassigned 4,619,903 (1,813,502) (877,128) (774,042) - (1,019,694) 135,537 Total 4,660,573$ (1,813,502)$ (877,128)$ (774,042)$ 15,778,512$ 5,047,250$ 22,021,663$ Pavement Manaqgement Plan Project Construction Fund DRAFT 70 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. Public Employees Police and Fire Plan The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the P olice and Fire Plan also covers police officers and firefighters belonging to a local relief associati on that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. General Employee Plan Benefits General Employee Plan benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a pror ated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. DRAFT 71 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the ef fective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase . C. Contributions Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019 and the City was required to contribute 7.50 percent for Coordinated Plan members in fiscal year 2021. The City’s contributions to the General Employees Fund for the year ending December 31, 2021, 2020 and 2019 were $145,120, $152,742 and $144,815, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. Police and Fire Fund Contributions Police and Fire member’s contribution rates increased from 11.30 percent of pay to 11.80 percent and employer rates increased from 16.95 percent to 17.70 percent on January 1, 2021. The City’s contributions to the Police and Fire Fund for the years ending December 31, 2021, 2020 and 2019 were $462,202, $455,708 and $411,298, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2021, the City reported a liability of $1,135,939 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $34,674. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuar ial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021 relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0266 percent which was a decrease of 0.0006 from its proportion measured as of June 30, 2020. City's Proportionate Share of the Net Pension Liability 1,135,939$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 34,674 Total 1,170,613$ For the year ended December 31, 2021, the City recognized negative pension expense of -$127,039 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $2,798 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. DRAFT 72 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) At December 31, 2021, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 7,005$ 34,853$ Changes in Actuarial Assumptions 693,581 25,544 Net Difference Between Projected and Actual Earnings on Plan Investments - 978,484 Changes in Proportion 32,623 17,987 Contributions to PERA Subsequent to the Measurement Date 80,998 - Total 814,207$ 1,056,868$ The $80,998 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: (29,696)$ (17,657) (7,979) (268,327) 2022 2023 2024 2025 Police and Fire Fund Pension Costs At December 31, 2021, the City reported a liability of $1,648,766 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021 relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2136 percent which was a decrease of 0.0037 from its proportionate share measured as of June 30, 2020. The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later DRAFT 73 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements For the year ended December 31, 2021, City recognized pension expense of $327,169 for its proportionate share of the Police and Fire Fund’s pension expense. In addition, the City recognized an additional $13,499 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $4.5 million to the Police and Fire Fund. At December 31, 2021, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 320,257$ 22,058$ Changes in Actuarial Assumptions 2,486,248 975,835 Net Difference Between Projected and Actual Earnings on Plan Investments - 3,144,311 Changes in Proportion 98,316 142,126 Contributions to PEPFP Subsequent to the Measurement Date 259,962 - Total 3,164,783$ 4,284,330$ The $259,962 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: (1,131,455)$ (209,843) (211,050) (357,659) 530,498 2022 2023 2024 2025 2026 DRAFT 74 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) E. Actuarial Assumptions The total pension liability in the June 30, 2021, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 29 years of service and 6.0 percent per year thereafter. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent after one year of service to 3.0 percent after 24 years of se rvice. Mortality rates for the General Employees Plan are based on the Pub -2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions used in the June 30, 2021 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four -year experience study for the Police and Fire Plan was completed in 2020 were adopted by the Board and became effective with the July 1, 2021 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2021: General Employees Fund Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. Changes in Plan Provisions • There were no changes in plan provisions since the previous valuation. DRAFT 75 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. • The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub- 2010 Public Safety Mortality table. The mortality improvement scale was changed from MP -2019 to MN-2020. • The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. Changes in Plan Provisions • There have been no changes since the prior valuation. DRAFT 76 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Domestic Equity 33.5 %5.10 % Alternative Assets (Private Markets)25.0 5.90 Bonds (Fixed Income)25.0 0.75 International Equity 16.5 5.30 Total 100.00 % Target Expected Real Allocation Rate of Return Long-term F. Discount Rate The discount rate used to measure the total pension liability in 2021 was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at r ates set in Minnesota statutes. Based on these assumptions, the fiduciary net position of the G eneral Employees Fund and the Police and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculat ed using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 Percent 1 Percent Decrease (6.50%)Current (7.50%)Increase (8.50%) General Employees Fund 2,316,736$ 1,135,939$ 167,023$ Police and Fire Fund 5,234,552 1,648,766 (1,290,691) City Proportionate Share of NPL H. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. DRAFT 77 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 5: Postemployment Benefits Other Than Pensions A. Plan Description The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage and is administered by Health Partners, Inc.. It is the City’s policy for Council to periodically review its medical coverage, and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. The City does not issue a publicly available repo rt. Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 5 Active Plan Members 53 Total Plan Members 58 B. Funding Policy Retirees receiving benefits contribute 100 percent of their premium costs. Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with HealthPartners, Inc. The required contributions are based on projected pay-as-you-go financing requirements. For the year ended December 31, 2021, the City’s average contribution rate was .5 percent of covered-employee payroll. For fiscal year 2021, the City contributed $30,694 to the plan. As of January 1, 2021, there were five retirees receiving health benefits from the City’s health plan. C. Actuarial Methods and Assumptions The City’s total OPEB liability of $1,056,792 was measured as of January 1, 2021, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2020. Roll forward procedures were used to roll forward the total OPEB liability to the measurement date. The total OPEB liability in the January 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless ot herwise specified: Discount Rate 2.74% Expected Long-Term Investment Return N/A 20-Year Municipal Bond Yield 3.30% Inflation Rate 2.50% Salary Increases 3.25% Medical Trend Rate 7.67% in 2020 grading to 5% over 10 years The discount rate used to measure the total OPEB liability was 2.74 percent as of January 1, 2020. Mortality rates were based on the RP-2014 White Collar Mortality Tables (de-trended to 2006) and then projected beyond the valuation date using scale MP-2017. The actuarial assumptions used in the January 1, 2020 valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. DRAFT 78 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 5: Postemployment Benefits Other Than Pensions (Continued) D. Changes in the Total OPEB Liability Total OPEB Liability (a) Balances at December 31, 2020 904,145$ Changes for the Year: Service cost 101,612 Interest 27,156 Differences between expected and actual experience (413) Changes in assumptions or other inputs 53,610 Benefit payments (29,318) Net Changes 152,647 Balances at December 31, 2021 1,056,792$ Since the prior measurement date, the following assumptions changed: • The discount rate was changed from 4.09% to 2.74%. E. Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it w ere calculated using a discount rate that is 1-percentage point lower (1.74 percent) or 1-percentage-point higher (3.74 percent) than the current discount rate: 1 Percent 1 Percent Decrease (1.74%)Current (2.74%)Increase (3.74%) 1,147,222$ 1,056,792$ 971,340$ The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a Healthcare Cost Trent Rate that is 1 -percentage point lower (6.67 percent decreasing to 5.67 percent) or 1-percentage-point higher (8.67 percent increasing to 7.67 percent) than the current cost trend rate: Healthcare Cost 1 Percent Decrease Trend Rates 1 Percent Increase (6.67% Decreasing (7.67% Decreasing (8.67% Decreasing to 5.67%)to 6.67%)to 7.67%) 909,547$ 1,056,792$ 1,233,529$ DRAFT 79 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 6: Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self -insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. Property and casualty insurance is provided through a pooled self -insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claim s in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusion s from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. The risk management activities of the City are accounted for by the Risk Management fund, an internal service fund, which charges its costs to user departments. The fund is designed to build up a reserve which will provide the City the opportunity to assume a greater share of its insurance risks and thereby reducing the cost to purchase insurance. B. Contingencies Tax Increment Financing Districts The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. The City has entered into “pay as you go” Tax Increment Financing notes within its TIF districts. These notes are payable only to the extent of the increment received. As a result, they are a commitment within the district but they have not met the criteria to be reported as a liability on the statement of net position. C. Flexible Benefit Plan The City offers a flexible benefit plan (the Plan). The Plan is a “cafeteria plan” under §125 of the Internal Revenue Code (IRC). All employees who meet the eligibility requirements may participate in the Plan. To be eligible, an employee must be at least 20 years of age and be regularly scheduled to work more than 20 hours per week. Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the Plan for healthcare and dependent care benefits. Payments are made from the Plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. All assets of the Plan are held and administered by an independent contract administrator for childcare and medical expense reimbursements, and by the City for health insurance premiums. All activity of the Plan is included in the financial statements as part of the General Fund and enterprise funds as employee benefits. DRAFT 80 City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 6: Other Information (Continued) All property of the Plan and income attributable to that property is solely the property of the City, subject to the claims of the City’s general creditors. Participants’ rights under the Plan are equal to those of general creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred by the participants. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. D. Conditional State Grant In 2005, as a part of the City’s acquisition of Big Island Park, the City was awarded a grant from the state of Minnesota in the amount of $2,000,000. The grant is repayable to the state if the property is not maintained for low -impact recreation and conservation use. E. Police Services Contracts As of December 31, 2019, the City of Orono had severa l contracts to provide police services to neighboring cities. The most significant of those was a contract with the city of Mound, which the City entered into as of January 1, 2013 and which extends 10 years to December 31, 2022. The contract also included annual payments from the city of Mound starting at $1,545,000 in 2013 and increasing between 1%-5% each year through the end of the contract. The City also has a contract with the cities of Minnetonka Beach and Spring Park to furnish law enforcement serv ices to each respective city. The original contract term ended December 31, 2012 and includes the option to verbally extend it each year for an additional one-year period. The contract has been extended each year through 202 1. Note 7: Subsequent Event On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and the risks to the international community as virus spreads globally. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. In response to the pandemic, the State of Minnesota has issued stay-at-home orders and other measures aimed at slowing the spread of the coronavirus. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development and fluidity of this situation, the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its financial condition, liquidity, and future revenue collection, and therefore any prediction as to the ultimate impact on the City’s financial condition, liquidity, and future results of its revenue collections is uncertain. Note 8: Prior Period Adjustment The City’s nonmajor Senior Housing TIF fund and HRA General fund recorded a prior period adjustment related to an interfund loan and land sale agreement, which was approved in previous years but not recorded until 2021. The interfund loan decreased the Senior Housing TIF fund balance by $580,667 and increased the HRA General fund balance by the same amount. DRAFT 81 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 82 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 83 City of Orono, Minnesota Required Supplementary Information For the Year Ended December 31, 2021 Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 06/30/21 0.0266 %1,135,939$ 34,674$ 1,170,613$ 1,916,486$ 59.3 %87.0 % 06/30/20 0.0272 1,630,764 50,397 1,681,161 1,942,203 84.0 79.0 06/30/19 0.0267 1,476,182 45,831 1,522,013 1,823,839 80.9 80.2 06/30/18 0.0256 1,420,183 - 1,420,183 1,679,073 84.6 79.5 06/30/17 0.0254 1,621,519 - 1,621,519 1,623,207 99.9 75.9 06/30/16 0.0259 2,102,952 - 2,102,952 1,570,420 133.9 68.9 06/30/15 0.0265 1,373,368 - 1,373,368 766,147 179.3 78.2 Plan Fiduciary the Net Pension of the Total Liability Pension Liability Net Position Proportion of as a Percentage Payroll (a/c) Covered City's City's Liability as a Percentage of Proportionate Share of the Net Pension Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Schedule of Employer’s PERA Contributions - General Employees Fund Contributions in Relation to the Statutorily Statutorily Contribution City's Required Required Deficiency Covered Year Contribution Contribution (Excess) Payroll Ending (a)(b)(a-b)(c) 12/31/21 145,120$ 145,120$ -$ 1,934,938$ 7.50 % 12/31/20 152,742 152,742 - 2,036,563 7.50 12/31/19 144,815 144,815 - 1,930,863 7.50 12/31/18 129,021 129,021 - 1,720,280 7.50 12/31/17 122,479 122,479 - 1,633,053 7.50 12/31/16 122,115 122,115 - 1,628,200 7.50 12/31/15 119,404 119,404 - 1,592,053 7.50 (b/c) a Percentage of Payroll Covered Contributions as Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. DRAFT 84 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Notes to the Required Supplementary Information - General Employees Fund Changes in Actuarial Assumptions 2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP -2019 to Scale MP-2020. 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP - 2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection was changed from MP-2017 to MP-2018 2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15 .0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post- retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was chan ged from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. DRAFT 85 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Notes to the Required Supplementary Information - General Employees Fund (Continued) Changes in Plan Provisions 2021 - There were no changes in plan provisions since the previous valuation. 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred aug mentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.00 percen t per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were update d to reflect revised mortality and interest assumptions. 2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapol is Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million . Upon consolidation, state and employer contributions were revised. DRAFT 86 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Schedule of Employer’s Share of PERA Net Pension Liability - Public Employees Police and Fire Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 06/30/21 0.2136 % 1,648,766$ 74,123$ 1,722,889$ 2,524,268$ 65.3 % 93.7 % 06/30/20 0.2173 2,864,247 2,864,247 2,453,352 116.7 87.2 06/30/19 0.2257 2,402,804 - 2,402,804 2,363,617 101.7 89.3 06/30/18 0.2170 2,312,996 - 2,312,996 2,237,340 103.4 88.8 06/30/17 0.2130 2,875,753 - 2,875,753 2,144,407 134.1 85.4 06/30/16 0.2180 8,748,719 - 8,748,719 2,078,460 420.9 63.9 06/30/15 0.2310 2,624,701 - 2,624,701 2,101,111 124.9 86.6 the Net Pension Payroll of the Total Liability (a/c)Pension Liability City's Percentage of Net Position Proportion of Covered as a Percentage Liability as a Plan Fiduciary City's Proportionate Share of the Net Pension Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Schedule of Employer’s PERA Contributions - Public Employees Police and Fire Fund Contributions in Relation to the Statutorily Statutorily Contribution City's Required Required Deficiency Covered Year Contribution Contribution (Excess) Payroll Ending (a)(b)(a-b)(c) 12/31/21 462,202$ 462,202$ -$ 2,611,311$ 17.70 % 12/31/20 455,708 455,708 - 2,574,623 17.70 12/31/19 411,298 411,298 - 2,538,879 16.20 12/31/18 370,490 370,490 - 2,286,975 16.20 12/31/17 358,655 358,655 - 2,187,704 16.20 12/31/16 340,380 340,380 - 2,101,111 16.20 12/31/15 330,041 330,041 - 2,055,809 16.20 (b/c) Contributions as a Percentage of Payroll Covered Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. DRAFT 87 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.00 percent. The base mortality table for h ealthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub- 2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP -2020). Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. Assumed rates of disability were inc reased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. 2020 - The mortality projection scale was changed from MP-2018 to MP-2019 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2016 to MP-2017. As set by statute, the assumed post- retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non -vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (hu sbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent . The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter. DRAFT 88 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 2021 - There were no changes in plan provisions since the previous valuation 2020 - There were no changes in plan provisions since the previous valuation 2019 - There were no changes in plan provisions since the previous valuation 2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined service annuity (CSA) load was 30.00 percent for vested and non -vested, deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mor tality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than female s. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. 2016 - There were no changes in plan provisions since the previous valuation 2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 percent. DRAFT 89 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2021 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 2021 2020 2019 2018 Total OPEB Liability Service cost 101,612$ 87,721$ 90,925$ 82,950$ Interest 27,156 38,684 31,294 30,294 Differences between expected and actual experience (413) (179,406) - - Changes in assumptions 53,610 114,403 (49,156) 23,193 Benefit payments (29,318) (30,694) (36,813) (35,472) Net Change in Total OPEB Liability 152,647 30,708 36,250 100,965 Total OPEB Liability - Beginning 904,145 873,437 837,187 736,222 Total OPEB Liability - Ending 1,056,792$ 904,145$ 873,437$ 837,187$ Covered Payroll 4,400,000$ 4,200,000$ 4,000,000$ 3,900,000$ City's total OPEB liability as a percentage of covered payroll 24.02 % 21.53 % 21.84 % 21.47 % Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. DRAFT 90 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 91 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 92 NONMAJOR GOVERNMENTAL FUNDS DRAFT 93 City of Orono, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2021 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Assets Cash and temporary investments 549,646$ 1,654,564$ 2,937,443$ 5,141,653$ Receivables Accrued interest 2,064 2,309 4,147 8,520 Taxes - 22,310 - 22,310 Special assessments 22,400 - 1,617 24,017 Due from other governments 986 9,328 - 10,314 Due from other funds 601,467 - - 601,467 Total Assets 1,176,563$ 1,688,511$ 2,943,207$ 5,808,281$ Liabilities Accounts and contracts payable 110,010$ -$ 3,227$ 113,237$ Due to other funds 601,467 - - 601,467 Total Liabilities 711,477 - 3,227 714,704 Deferred Inflows of Resources Unavailable revenues - delinquent taxes - 22,310 - 22,310 Unavailable revenues - special assessments 22,400 - 1,617 24,017 Total Deferred Inflows of Resources 22,400 22,310 1,617 46,327 Fund Balances Restricted 1,423,668 1,666,201 - 3,089,869 Committed 38,712 - - 38,712 Assigned - - 2,938,363 2,938,363 Unassigned (1,019,694) - - (1,019,694) Total Fund Balances 442,686 1,666,201 2,938,363 5,047,250 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,176,563$ 1,688,511$ 2,943,207$ 5,808,281$ DRAFT 94 City of Orono, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Revenues Taxes 145,895$ 574,785$ -$ 720,680$ Special assessments 33,933 - 1,826 35,759 Licenses and permits 170,200 - - 170,200 Intergovernmental 150,000 - 230,076 380,076 Charges for services 25,095 - - 25,095 Fines and forfeitures 157,471 - - 157,471 Investment earnings 18,750 (4,855) (7,193) 6,702 Miscellaneous 6,138 - 4,400 10,538 Total Revenues 707,482 569,930 229,109 1,506,521 Expenditures Current Public safety 715 - - 715 Parks and recreation 53,011 - - 53,011 Community development 59,265 - - 59,265 Capital outlay Public works - - 340,897 340,897 Parks and recreation 531,906 - - 531,906 Debt service Principal - 725,000 - 725,000 Interest and other charges - 87,476 - 87,476 Total Expenditures 644,897 812,476 340,897 1,798,270 Excess (Deficiency) of Revenues Over (Under) Expenditures 62,585 (242,546) (111,788) (291,749) Other Financing Sources Transfers in - 304,688 276,562 581,250 Net Change in Fund Balances 62,585 62,142 164,774 289,501 Fund Balances, January 1 380,101 1,604,059 2,773,589 4,757,749 Fund Balances, December 31 442,686$ 1,666,201$ 2,938,363$ 5,047,250$ DRAFT 95 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 96 NONMAJOR SPECIAL REVENUE FUNDS Special Revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Park Fund accounts for received park dedication fees to be used for land acquisition and park development. Drug and Felony Forfeiture Fund accounts for proceeds received from seizures relating to drug and felony criminal activity, donations received for the police department, other appropriate revenues authorized by the City Council, and all authorized related expenditures. Affordable Housing Fund accounts for revenues and expenditures related to financial assistance packages provided to several low-income households to make new town home units affordable. Lurton Park Fund accounts for revenues and expenditures related to the maintenance and trails within Lurton Park property. Senior Housing TIF Fund accounts for revenues and expenditures related to the senior housing property. Golf Course Improvement Fund accounts for revenues and expenditures related to the improvement of the City’s golf course. Big Island Fund accounts for revenues and expenditures related to the improvement of the Big Island Nature Park. Carmen Bay Lake Improvement Fund accounts for revenues and expenditures related to the improvement of Carmen Bay. CARES Fund accounts for revenues from and expenditures related to uses of the coronavirus relief funds. DRAFT 97 City of Orono, Minnesota Nonmajor Special Revenue Funds Subcombining Balance Sheet December 31, 2021 225 231 233 234 Drug and Felony Affordable Lurton Park Forfeiture Housing Park Assets Cash and temporary investments (421,137)$ 565,755$ 139,668$ 48,301$ Receivables Accrued interest 1,296 494 189 2 Special assessments - - - - Due from other governments 980 - - - Due from other funds - - - - Total Assets (418,861)$ 566,249$ 139,857$ 48,303$ Liabilities Accounts and contracts payable 107,610$ -$ -$ -$ Due to other funds - - - - Total Liabilities 107,610 - - - Deferred Inflows of Resources Unavailable revenues - special assessments - - - - Fund Balances Restricted - 566,249 139,857 9,591 Committed - - - 38,712 Unassigned (526,471) - - - Total Fund Balances (526,471) 566,249 139,857 48,303 Total Liabilities, Deferred Inflows of Resources and Fund Balances (418,861)$ 566,249$ 139,857$ 48,303$ DRAFT 98 235 237 238 239 241 236 Carmen Bay Senior Golf Course Lake HRA General Housing TIF Improvement Big Island Improvement Fund New TIF Total 110,498$ 281$ 88,887$ 17,393$ -$ -$ 549,646$ 146 2 (62) (3) - - 2,064 - - - 22,400 - - 22,400 - - - 6 - - 986 - - - 601,467 - 601,467 110,644$ 283$ 88,825$ 39,796$ 601,467$ -$ 1,176,563$ -$ -$ -$ -$ -$ 2,400$ 110,010$ 601,467 - - - - 601,467 601,467 - - - - 2,400 711,477 - - - 22,400 - - 22,400 - 283 88,825 17,396 601,467 - 1,423,668 - - - - - - 38,712 (490,823) - - - (2,400) (1,019,694) (490,823) 283 88,825 17,396 601,467 (2,400) 442,686 110,644$ 283$ 88,825$ 39,796$ 601,467$ -$ 1,176,563$ DRAFT 99 City of Orono, Minnesota Nonmajor Special Revenue Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 225 231 233 234 Drug and Felony Affordable Lurton Park Forfeiture Housing Park Revenues Taxes 60,418$ -$ -$ -$ Special assessments - - - - Licenses and permits 170,200 - - - Intergovernmental 150,000 - - - Charges for services - - - 25,095 Fines and forfeitures - 157,471 - - Investment earnings 287 (1,551) (334) (64) Miscellaneous - - - 138 Total Revenues 380,905 155,920 (334) 25,169 Expenditures Current Public safety - 715 - - Parks and recreation 31,925 - - 1,593 Community development - - - - Capital outlay Parks and recreation 509,056 - - 22,850 Total Expenditures 540,981 715 - 24,443 Net Change in Fund Balances (160,076) 155,205 (334) 726 Fund Balances, January 1 (366,395) 411,044 140,191 47,577 Prior Period Adjustment - - - - Fund Balances, December 31 (526,471)$ 566,249$ 139,857$ 48,303$ DRAFT 100 235 237 238 239 241 236 Carmen Bay Senior Golf Course Lake HRA General Housing TIF Improvement Big Island Improvement Fund New TIF Total 85,477$ -$ -$ -$ -$ -$ 145,895$ - - - 33,933 - - 33,933 - - - - - - 170,200 - - - - - - 150,000 - - - - - - 25,095 - - - - - - 157,471 (115) - (227) (46) 20,800 - 18,750 - - 6,000 - - - 6,138 85,362 - 5,773 33,887 20,800 - 707,482 - - - - - - 715 - - - 17,093 - 2,400 53,011 59,265 - - - - - 59,265 - - - - - - 531,906 59,265 - - 17,093 - 2,400 644,897 26,097 - 5,773 16,794 20,800 (2,400) 62,585 63,747 283 83,052 602 - - 380,101 (580,667) - - - 580,667 - - (490,823)$ 283$ 88,825$ 17,396$ 601,467$ (2,400)$ 442,686$ DRAFT 101 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 102 NONMAJOR DEBT SERVICE FUNDS Debt Service funds are used to account for the accumulation of resources for, and payment of, principal and interest and related costs on general long-term debt. 2000 Improvement Bonds accounts for resources accumulated and payments for principal and interest associated with financing improvement projects. 2016 Refunding Bonds accounts for resources accumulated and payments for principal and interest on the 2016 Refunding bonds. DRAFT 103 City of Orono, Minnesota Nonmajor Debt Service Funds Subcombining Balance Sheet December 31, 2021 322 323 2000 2016 Improvement Refunding Bonds Bonds Total Assets Cash and temporary investments 718,900$ 935,664$ 1,654,564$ Receivables Accrued interest 1,191 1,118 2,309 Taxes 7,148 15,162 22,310 Due from other governments 2,683 6,645 9,328 Total Assets 729,922$ 958,589$ 1,688,511$ Deferred Inflows of Resources Unavailable revenues - delinquent taxes 7,148 15,162 22,310 Fund Balances Restricted 722,774 943,427 1,666,201 Total Deferred Inflows of Resources and Fund Balances 729,922$ 958,589$ 1,688,511$ DRAFT 104 City of Orono, Minnesota Nonmajor Debt Service Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 322 323 2000 2016 Improvement Refunding Bonds Bonds Total Revenues Taxes 165,308$ 409,477$ 574,785$ Investment earnings (1,690) (3,165) (4,855) Total Revenues 163,618 406,312 569,930 Expenditures Debt service Principal 230,000 495,000 725,000 Interest and other charges 67,410 20,066 87,476 Total Expenditures 297,410 515,066 812,476 Excess (Deficiency) of Revenues Over (Under) Expenditures (133,792) (108,754) (242,546) Other Financing Sources Transfers in 92,188 212,500 304,688 Net Change in Fund Balances (41,604) 103,746 62,142 Fund Balances, January 1 764,378 839,681 1,604,059 Fund Balances, December 31 722,774$ 943,427$ 1,666,201$ DRAFT 105 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 106 NONMAJOR CAPITAL PROJECTS FUNDS Capital Project funds account for financial resources to be used for acquisition or construction of major capital facilities (other than those financed by Proprietary funds). Improvement Equipment Outlay Fund accounts for the capital outlay costs of obtaining new equipment for various functions. Permanent Revolving Improvement Fund accounts for the construction costs prior to obtaining permanent financing. Community Investment Construction fund is used to collect and spend resources on the various community assets of the City. Navarre Fire Station Construction Fund accounts for the construction costs of a new fire station in the Navarre area of the City. Big Island Public Project Fund accounts for the improvement of the Big Island Nature Park. DRAFT 107 City of Orono, Minnesota Nonmajor Capital Projects Funds Subcombining Balance Sheet December 31, 2021 405 406 408 Improvement Permanent Community Equipment Revolving Investment Outlay Improvement Construction Assets Cash and temporary investments 513,163$ 1,511,957$ 634,872$ Receivables Accrued interest 1,064 1,995 991 Special assessments - 1,617 - Total Assets 514,227$ 1,515,569$ 635,863$ Liabilities Accounts and contracts payable -$ -$ 3,227$ Deferred Inflows of Resources Unavailable revenues - special assessments - 1,617 - Fund Balances Assigned 514,227 1,513,952 632,636 Total Liabilities, Deferred Inflows of Resources and Fund Balances 514,227$ 1,515,569$ 635,863$ DRAFT 108 425 430 Navarre Big Island Fire Station Public Construction Project Total 933$ 276,518$ 2,937,443$ 10 87 4,147 - - 1,617 943$ 276,605$ 2,943,207$ -$ -$ 3,227$ - - 1,617 943 276,605 2,938,363 943$ 276,605$ 2,943,207$ DRAFT 109 City of Orono, Minnesota Nonmajor Capital Projects Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 405 406 408 Improvement Permanent Community Equipment Revolving Investment Outlay Improvement Construction Revenues Special assessments -$ 1,826$ -$ Intergovernmental - - - Investment earnings (1,120) (3,612) (1,460) Miscellaneous 4,400 - - Total Revenues 3,280 (1,786) (1,460) Expenditures Capital outlay Public works 319,058 1,487 20,352 Excess (Deficiency) of Revenues Over (Under) Expenditures (315,778) (3,273) (21,812) Other Financing Sources Transfers in 276,562 - - Net Change in Fund Balances (39,216) (3,273) (21,812) Fund Balances, January 1 553,443 1,517,225 654,448 Fund Balances, December 31 514,227$ 1,513,952$ 632,636$ DRAFT 110 425 430 Navarre Big Island Fire Station Public Construction Project Total -$ -$ 1,826$ - 230,076 230,076 (2) (999) (7,193) - - 4,400 (2) 229,077 229,109 - - 340,897 (2) 229,077 (111,788) - - 276,562 (2) 229,077 164,774 945 47,528 2,773,589 943$ 276,605$ 2,938,363$ DRAFT 111 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 112 NONMAJOR PROPRIETARY FUNDS Nonmajor proprietary funds are used to account for the financial resources that are produced and used by the business - type funds that are not significant enough to be presented individually. Recycling Fund accounts for the revenues and expenses related to the City’s recycling program. Cable Television Fund accounts for the revenues and expenses created from the cable franchise agreements that the City is a part of. DRAFT 113 Recycling Cable Television Total Assets Current Assets Cash and temporary investments 65,436$ (1,565)$ 63,871$ Receivables Accrued interest 87 361 448 Accounts 26,369 18,078 44,447 Total Current Assets 91,892 16,874 108,766 Noncurrent Assets Machinery and equipment - 238,311 238,311 Less accumulated depreciation - (53,679) (53,679) Total Noncurrent Assets - 184,632 184,632 Total Assets 91,892 201,506 293,398 Deferred Outflows of Resources Deferred pension resources 6,941 13,104 20,045 Liabilities Current Liabilities Accounts and contracts payable 14,511 - 14,511 Accrued salaries payable 183 357 540 Total Current Liabilities 14,694 357 15,051 Noncurrent Liabilities Net pension liability 9,683 18,282 27,965 Total Liabilities 24,377 18,639 43,016 Deferred Inflows of Resources Deferred pension resources 9,010 17,010 26,020 Net Position Investment in capital assets - 184,632 184,632 Unrestricted 49,464 (5,671) 43,793 Total Net Position 49,464$ 178,961$ 228,425$ City of Orono, Minnesota Combining Statement of Net Position Nonmajor Proprietary Funds December 31, 2021 Business-type Activities - Enterprise Funds DRAFT 114 Recycling Cable Television Total Operating Revenues Charges for services 224,559$ 74,742$ 299,301$ Operating Expenses Personnel services 22,039 38,617 60,656 Supplies - 462 462 Professional services 193,066 41,786 234,852 Depreciation - 16,395 16,395 Administrative charges from the General Fund - 2,515 2,515 Other 16,497 - 16,497 Total Operating Expenses 231,602 99,775 331,377 Operating Loss (7,043) (25,033) (32,076) Nonoperating Revenues Investment earnings (180) (148) (328) Miscellaneous revenues 10,173 45 10,218 Total Nonoperating Revenues 9,993 (103) 9,890 Change in Net Position 2,950 (25,136) (22,186) Net Position - January 1 46,514 204,097 250,611 Net Position, December 31 49,464$ 178,961$ 228,425$ City of Orono, Minnesota Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds DRAFT 115 Recycling Cable Television Total Cash Flows from Operating Activities Receipts from customers and users 205,914$ 76,418$ 282,332$ Other operating receipts 10,173 45 10,218 Payments to suppliers (195,052) (44,763) (239,815) Payments to employees (22,282) (41,930) (64,212) Net Cash Provided (Used) by Operating Activities (1,247) (10,230) (11,477) Cash Flows from Capital and Related Financing Activities Special assessments received - - - Cash Flows from Investing Activities Investment receipts (141) (141) (282) Net Decrease in Cash and Cash Equivalents 14,594 (10,371) 4,223 Cash and Cash Equivalents, January 1 50,842 8,806 59,648 Cash and Cash Equivalents, December 31 65,436$ (1,565)$ 63,871$ Reconciliation of Operating Loss to Net Cash Provided (Used) by Operating Activities Operating loss (7,043)$ (25,033)$ (32,076)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation - 16,395 16,395 Other income related to operations 10,173 45 10,218 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (18,645) 1,676 (16,969) Deferred pension resources (5,361) (9,749) (15,110) Increase (decrease) in liabilities/deferred inflows of resources Accounts and contracts payable 14,511 - 14,511 Accrued salaries payable 54 96 150 Net pension liability (3,368) (9,442) (12,810) Deferred pension resources 8,432 15,782 24,214 Net Cash Provided (Used) by Operating Activities (1,247)$ (10,230)$ (11,477)$ City of Orono, Minnesota Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds DRAFT 116 City of Orono, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2021 Actual Variance with Original Final Amounts Final Budget Revenues Taxes 4,936,140$ 4,936,140$ 4,914,877$ (21,263)$ Licenses and permits 532,200 532,200 611,442 79,242 Intergovernmental 268,000 268,000 546,258 278,258 Charges for services 3,350,460 3,350,460 3,782,381 431,921 Fines and forfeitures 70,100 70,100 86,973 16,873 Investment earnings 70,500 70,500 (12,716) (83,216) Miscellaneous Rents and refunds 5,400 5,400 5,850 450 Other 7,700 7,700 35,983 28,283 Total Revenues 9,240,500 9,240,500 9,971,048 730,548 Expenditures Current General government Administration 472,400 472,400 434,973 37,427 Election 31,400 31,400 27,865 3,535 Assessing 210,000 210,000 228,333 (18,333) Finance 263,550 263,550 202,064 61,486 Legal 133,000 133,000 126,968 6,032 Human services 12,400 12,400 9,500 2,900 Central services 333,100 333,100 318,660 14,440 Total general government 1,455,850 1,455,850 1,348,363 107,487 Public Saftey Police 4,700,400 4,700,400 4,619,062 81,338 Fire 435,000 435,000 427,091 7,909 Inspection and Zoning 733,300 733,300 810,520 (77,220) Total public saftey 5,868,700 5,868,700 5,856,673 12,027 Public Works Streets 833,200 833,200 811,636 21,564 Parks and Recreation Golf Course 233,600 233,600 339,611 (106,011) Other 279,150 279,150 243,645 35,505 Total parks and recreation 512,750 512,750 583,256 (70,506) Capital Outlay Public Saftey 190,000 190,000 305,671 (115,671) Total Expenditures 8,860,500 8,860,500 8,905,599 (45,099) Excess of Revenues Over Expenditures 380,000 380,000 1,065,449 685,449 Other Financing Sources (Uses) Proceeds from sale of capital assets 20,000 20,000 31,388 11,388 Transfers out (400,000) (400,000) (983,297) (583,297) Total Other Financing Sources (Uses)(380,000) (380,000) (951,909) (571,909) Net Change in Fund Balances - - 113,540 113,540 Fund Balances, January 1 4,547,033 4,547,033 4,547,033 - Fund Balances, December 31 4,547,033$ 4,547,033$ 4,660,573$ 113,540$ Budget Amounts DRAFT 117 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 118 INTERNAL SERVICE FUNDS Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the City, on a cost reimbursement basis. Revenues are recognized in the accounting period in which they are earned and become objectively measurable; expenses are recognized in the period incurred, if objectively measurable. Insurance Fund was established to account for the insurance costs incurred by the City for general liability, property, vehicle, workers’ compensation, and other insurance and deductibles. Compensated Absences Fund was established to account for the accrual of sick and vacation days that are earned by the City’s employees. Fleet Management Fund was established to account for the costs of repairs, maintenance, and supplies for the City’s various vehicles. IT Services was established to account for the cost of IT services to the various City functions and departments. DRAFT 119 City of Orono, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2021 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Assets Current Assets Cash and temporary investments 238,140$ 728,664$ 16,507$ (146,073)$ 837,238$ Receivables Accrued interest 356 685 (46) 136 1,131 Prepaid items 8,000 - - 36,916 44,916 Total Assets 246,496 729,349 16,461 (109,021) 883,285 Liabilities Current Liabilities Accounts and contracts payable - - 7,591 14,554 22,145 Accrued salaries payable 259 - - 1,433 1,692 Total Liabilities 259 - 7,591 15,987 23,837 Net Position Unrestricted 246,237$ 729,349$ 8,870$ (125,008)$ 859,448$ DRAFT 120 City of Orono, Minnesota Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2021 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Operating Revenues Charges for services 407,424$ -$ 5,483$ -$ 412,907$ Other 21,194 - 131,725 238,519 391,438 Total Operating Revenues 428,618 - 137,208 238,519 804,345 Operating Expenses Personnel services 190,203 - - 81,432 271,635 Supplies - - - 12,755 12,755 Professional services - - - 175,979 175,979 Repairs and maintenance - - 171,947 19,014 190,961 Insurance 208,186 - - - 208,186 Total Operating Expenses 398,389 - 171,947 289,180 859,516 Operating Income (Loss)30,229 - (34,739) (50,661) (55,171) Nonoperating Revenues Investment earnings (95) (527) (36) - (658) Change in Net Position 30,134 (527) (34,775) (50,661) (55,829) Net Position, January 1 216,103 729,876 43,645 (74,347) 915,277 Net Position, December 31 246,237$ 729,349$ 8,870$ (125,008)$ 859,448$ DRAFT 121 City of Orono, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2021 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Cash Flows from Operating Activities Receipts from customers and users 428,618$ -$ 137,208$ 238,519$ 804,345$ Payments to suppliers (210,686) - (173,289) (198,583) (582,558) Payments to employees (190,114) - - (81,041) (271,155) Net Cash Provided (Used) by Operating Activities 27,818 - (36,081) (41,105) (49,368) Cash Flows from Investing Activities Investment receipts 11 - 10 (136) (115) Net Increase (Decrease) in Cash and Cash Equivalents 27,829 - (36,071) (41,241) (49,483) Cash and Cash Equivalents, January 1 210,311 728,664 52,578 (104,832) 886,721 Cash and Cash Equivalents, December 31 238,140$ 728,664$ 16,507$ (146,073)$ 837,238$ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss)30,229$ -$ (34,739)$ (50,661)$ (55,171)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities (Increase) decrease in assets Prepaid items (2,500) - - (4,364) (6,864) Increase (decrease) in liabilities Accounts and contracts payable - - (1,342) 13,529 12,187 Accrued salaries payable 89 - - 391 480 Net Cash Provided (Used) by Operating Activities 27,818$ -$ (36,081)$ (41,105)$ (49,368)$ DRAFT 122 STATISTICAL SECTION (UNAUDITED) CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 DRAFT 123 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 124 STATISTICAL SECTION (UNAUDITED) This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Pages Financial Trends 125 - 134 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 136 - 139 These schedules contain information to help the reader assess the City’s most significant local revenue source, property taxes. Debt Capacity 140 - 146 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information 147 - 149 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information 150 - 154 These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year. DRAFT 125 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 126 City of Orono, Minnesota Summary Financial Report Governmental Funds Revenues and Expenditures For General Operations For the Years Ended December 31, 2021 and 2020 2021 2020 Revenues Taxes 6,691,522$ 6,043,234$ 10.73 % Special assessments 35,759 35,881 (0.34) Licenses and permits 781,642 502,714 55.48 Intergovernmental 1,048,012 1,439,511 (27.20) Charges for services 3,941,998 3,578,117 10.17 Fines and forfeits 244,444 72,428 237.50 Investment earnings (6,927) 173,308 (104.00) Miscellaneous 52,371 141,544 (63.00) Total Revenues 12,788,821$ 11,986,737$ 6.69 % Per Capita 1,538$ 1,447$ 6.29 % Expenditures Current General government 1,348,363$ 1,732,325$ (22.16) % Public safety 5,857,388 5,599,888 4.60 Public works 811,636 1,089,733 (25.52) Parks and recreation 636,267 570,346 11.56 Community development 59,265 111,781 (46.98) Capital outlay Public safety 305,671 212,438 43.89 Public works 2,054,964 1,547,322 32.81 Parks and recreation 531,906 808,910 (34.24) Debt service Principal 2,150,000 925,000 132.43 Interest and other charges 87,476 164,613 (46.86) Bond issuance costs 325,901 - N/A Total Expenditures 14,168,837$ 12,762,356$ 11.02 % Per Capita 1,704$ 1,541$ 10.61 Total Long-term Indebtedness 19,130,874$ 5,302,901$ 260.76 % Per Capita 2,301 640 259.42 General Fund Balance - December 31 4,660,573$ 4,547,033$ 2.50 % Per Capita 561 549 2.12 Total Percent Increase (Decrease) The purpose of this report is to provide a summary of financial information concerning the City of Orono to interested citizens. The complete financial statements may be examined at City Hall, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323. Questions about this report should be directed to the Finance Department at (952) 249-4600. DRAFT 127 City of Orono, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Governmental Activities Net investment in capital assets 11,373,668$ 10,855,727$ 10,720,258$ 14,269,848$ Restricted 3,279,963 3,596,762 3,535,595 3,835,852 Unrestricted 7,159,290 7,777,232 9,616,862 3,740,883 Total Governmental Activities Net Position 21,812,921$ 22,229,721$ 23,872,715$ 21,846,583$ Business-type Activities Net investment in capital assets 15,393,009$ 15,586,266$ 16,042,333$ 15,505,885$ Unrestricted 6,196,614 6,105,512 5,946,733 6,411,818 Total Business-type Activities Net Position 21,589,623$ 21,691,778$ 21,989,066$ 21,917,703$ Total Primary Government Net investment in capital assets 26,766,677$ 26,441,993$ 26,762,591$ 29,775,733$ Restricted 3,279,963 3,596,762 3,535,595 3,835,852 Unrestricted 13,355,904 13,882,744 15,563,595 10,152,701 Total Primary Government Net Position 43,402,544$ 43,921,499$ 45,861,781$ 43,764,286$ Fiscal Year Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated.DRAFT 128 2016 2017 2018 2019 2020 2021 16,660,990$ 19,020,035$ 23,370,988$ 25,500,646$ 28,256,953$ 31,038,598$ 9,046,977 3,699,095 3,434,418 2,418,794 2,252,227 1,767,721 (3,794,950) 894,132 (840,224) 1,122,484 (116,070) 448,607 21,913,017$ 23,613,262$ 25,965,182$ 29,041,924$ 30,393,110$ 33,254,926$ 16,427,467$ 16,940,333$ 17,917,465$ 18,679,663$ 18,910,474$ 19,404,787$ 6,001,307 5,687,684 5,086,696 4,389,380 4,774,995 5,873,484 22,428,774$ 22,628,017$ 23,004,161$ 23,069,043$ 23,685,469$ 25,278,271$ 33,088,457$ 35,960,368$ 41,288,453$ 44,180,309$ 47,167,427$ 50,443,385$ 9,046,977 3,699,095 3,434,418 3,202,919 2,867,209 2,473,827 2,206,357 6,581,816 4,246,472 5,511,864 4,658,925 6,322,091 44,341,791$ 46,241,279$ 48,969,343$ 52,895,092$ 54,693,561$ 59,239,303$ Fiscal Year DRAFT 129 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Expenses Governmental activities General government 1,836,682$ 1,931,772$ 1,719,267$ 1,864,543$ Public safety 3,317,261 4,526,574 4,984,389 5,107,619 Public works 1,194,986 1,610,302 854,079 999,097 Culture and recreation 270,356 279,796 254,177 324,731 Recycling 104,046 - - - Interest on long-term debt 324,633 413,935 287,181 283,146 Total Governmental Activities Expenses 7,047,964 8,762,379 8,099,093 8,579,136 Business-type activities Water 473,191 514,522 556,766 581,758 Sewer 1,161,273 1,136,040 1,184,629 1,332,617 Storm water 126,294 145,907 186,719 163,747 Recycling - 114,837 114,983 116,642 Cable television - - 12,675 31,802 Interest and fiscal charges 1,900 899 - - Total Business-type Activities Expenses 1,762,658 1,912,205 2,055,772 2,226,566 Total Primary Government Expenses 8,810,622$ 10,674,584$ 10,154,865$ 10,805,702$ Program Revenues Governmental activities Charges for services General government 482,883$ 646,284$ 692,254$ 736,643$ Public safety 909,170 2,544,587 2,570,751 2,737,342 Public works 165,503 128,402 2,998 3,933 Culture and recreation 129,918 149,994 207,977 499,083 Recycling 81,224 - - - Operating grants and contributions 586,891 627,650 925,968 732,114 Capital grants and contributions 18,806 11,187 22,060 13,549 Total Governmental Activities Program Revenues 2,374,395 4,108,104 4,422,008 4,722,664 Business-type activities Charges for services Water 502,864 436,770 452,429 492,947 Sewer 1,107,357 1,206,926 1,200,043 1,297,786 Storm water 242,563 314,415 318,787 527,255 Recycling - 110,912 113,501 128,387 Cable television - - 71,412 99,632 Operating grants and contributions - - 34,500 34,500 Capital grants and contributions 19,133 495 178,371 16,765 Total Business-type Activities Program Revenues 1,871,917 2,069,518 2,369,043 2,597,272 Total Primary Government Program Revenues 4,246,312$ 6,177,622$ 6,791,051$ 7,319,936$ Fiscal Year DRAFT 130 2016 2017 2018 2019 2020 2021 2,314,539$ 2,722,779$ 1,947,411$ 818,147$ 1,865,451$ 1,572,281$ 6,263,133 5,486,330 5,661,624 5,422,838 6,361,790 5,445,046 752,976 393,354 2,131,198 946,735 1,946,959 1,705,585 413,797 420,410 465,170 535,357 696,274 731,394 - - - 141,722 111,781 59,265 258,874 173,552 155,122 150,164 138,240 359,970 10,003,319 9,196,425 10,360,525 8,014,963 11,120,495 9,873,541 634,562 680,595 915,730 984,452 1,044,516 1,110,702 1,401,278 1,429,209 1,381,752 1,538,449 1,743,277 1,676,642 225,113 190,935 143,194 433,908 354,524 310,626 118,054 126,333 127,044 173,049 227,227 232,165 31,724 48,684 51,943 90,586 91,128 100,970 - - - - - - 2,410,731 2,475,756 2,619,663 3,220,444 3,460,672 3,431,105 12,414,050$ 11,672,181$ 12,980,188$ 11,235,407$ 14,581,167$ 13,304,646$ 770,750$ 947,851$ 1,147,449$ 966,665$ 984,876$ 1,225,915$ 2,720,584 2,947,439 3,102,546 2,656,733 2,607,888 2,798,742 5,108 385 5,826 881,011 638,149 849,480 420,184 195,449 389,206 86,501 11,711 175,232 - - - - - - 671,059 1,174,782 1,741,370 419,114 976,217 550,474 1,070 609 820,165 649,359 617,082 273,445 4,588,755 5,266,515 7,206,562 5,659,383 5,835,923 5,873,288 594,198 629,736 699,562 871,125 1,257,201 1,616,435 1,505,467 1,408,480 1,477,225 1,600,046 1,902,088 2,232,546 538,870 289,643 421,838 361,199 701,562 715,037 142,470 140,218 136,922 131,013 212,038 234,732 77,511 76,352 78,716 80,237 79,588 74,787 34,500 - 34,500 21,058 - 15,982 - 45,218 7,400 253,370 6,050 364,815 2,893,016 2,589,647 2,856,163 3,318,048 4,158,527 5,254,334 7,481,771$ 7,856,162$ 10,062,725$ 8,977,431$ 9,994,450$ 11,127,622$ Fiscal Year DRAFT 131 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Net Revenues (Expenses) Governmental activities (4,673,569)$ (4,654,275)$ (3,677,085)$ (3,856,472)$ Business-type activities 109,259 157,313 313,271 370,706 Total Primary Government Net Revenues (Expenses)(4,564,310)$ (4,496,962)$ (3,363,814)$ (3,485,766)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 4,716,941$ 4,746,856$ 4,809,875$ 4,819,345$ Tax increments - - - - Grants and contributions not restricted to specific programs - - - - Other general revenues 139,494 214,876 17,337 44,051 Unrestricted investment earnings 126,298 (81,067) 215,606 144,252 Gain on sale of capital assets - 24,410 7,961 6,466 Transfers 166,000 166,000 269,300 320,209 Total Governmental Activities 5,148,733 5,071,075 5,320,079 5,334,323 Business-type activities Other general revenues 183,619 130,550 163,719 141,546 Grants and contributions not restricted to specific programs Unrestricted investment earnings 59,096 (19,708) 124,098 67,076 Gain on sale of capital assets - - - - Transfers (166,000) (166,000) (269,300) (320,209) Total Business-type Activities 76,715 (55,158) 18,517 (111,587) Total Primary Government 5,225,448$ 5,015,917$ 5,338,596$ 5,222,736$ Change in Net Position Governmental activities 475,164$ 416,800$ 1,642,994$ 1,477,851$ Business-type activities 185,974 102,155 331,788 259,119 Total Primary Government 661,138$ 518,955$ 1,974,782$ 1,736,970$ Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated. Fiscal Year DRAFT 132 2016 2017 2018 2019 2020 2021 (5,414,564)$ (3,929,910)$ (3,153,963)$ (2,355,580)$ (5,284,572)$ (4,000,253)$ 482,285 113,891 236,500 97,604 697,855 1,823,229 (4,932,279)$ (3,816,019)$ (2,917,463)$ (2,257,976)$ (4,586,717)$ (2,177,024)$ 5,021,340$ 5,268,854$ 5,510,133$ 5,630,633$ 5,999,083$ 6,551,553$ - - - 76,344 82,686 145,895 - - - 26,372 5,321 1,784 149,388 53,207 193,279 - - - 109,752 114,356 132,799 259,332 173,308 (6,927) 45,518 38,738 - 63,105 36,217 48,388 155,000 155,000 (41,000) 160,661 170,000 212,500 5,480,998 5,630,155 5,795,211 6,216,447 6,466,615 6,953,193 160,967 185,909 79,683 - - - - - - 57,319 54,443 51,588 127,939 88,571 (17,927) - - - - - - (155,000) (155,000) 41,000 (160,661) (170,000) (212,500) 63,286 85,352 172,271 (32,722) (81,429) (230,427) 5,544,284$ 5,715,507$ 5,967,482$ 6,183,725$ 6,385,186$ 6,722,766$ 66,434$ 1,700,245$ 2,641,248$ 3,860,867$ 1,182,043$ 2,952,940$ 545,571 199,243 408,771 64,882 616,426 1,592,802 612,005$ 1,899,488$ 3,050,019$ 3,925,749$ 1,798,469$ 4,545,742$ Fiscal Year DRAFT 133 City of Orono, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012 2013 2014 2015 General Fund Nonspendable 66,296$ 30,909$ 40,532$ 74,800$ Unassigned 3,133,691 3,354,809 3,886,128 4,233,687 Total General Fund 3,199,987$ 3,385,718$ 3,926,660$ 4,308,487$ All Other Governmental Funds Nonspendable 1,189$ -$ -$ -$ Restricted 4,912,412 3,455,223 3,625,599 3,957,346 Committed - - - - Assigned 3,888,083 4,133,893 4,029,776 2,951,616 Unassigned - - - (178,573) Total All Other Governmental Funds 8,801,684$ 7,589,116$ 7,655,375$ 6,730,389$ Note: GASB Statement No. 54 replaced the categories used to classify fund balance. The City implemented GASB Statement No. 54 in 2011, prior year balances were not reclassified. Fiscal Year DRAFT 134 2016 2017 2018 2019 2020 2021 25,376$ 13,277$ 118,170$ 119,157$ 30,343$ 40,670$ 4,400,222 4,433,559 4,336,396 4,288,536 4,516,690 4,619,903 4,425,598$ 4,446,836$ 4,454,566$ 4,407,693$ 4,547,033$ 4,660,573$ -$ -$ -$ -$ -$ -$ 6,383,149 3,685,145 3,495,176 3,250,008 2,908,430 18,561,508 - - - 16,741 36,329 38,712 3,358,915 3,148,848 2,403,358 2,721,806 2,773,589 3,245,236 (872,147) (1,050,959) (2,759,730) (2,676,572) (3,111,513) (4,484,366) 8,869,917$ 5,783,034$ 3,138,804$ 3,311,983$ 2,606,835$ 17,361,090$ Fiscal Year DRAFT 135 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012 2013 2014 2015 Revenues Taxes 4,724,264$ 4,785,052$ 4,840,777$ 4,839,722$ Licenses and permits 509,300 613,184 675,204 846,343 Intergovernmental 393,148 421,485 745,062 545,236 Charges for services 979,122 2,474,211 2,569,831 2,896,458 Fines and forfeitures 159,673 175,321 153,821 134,754 Investment earnings 114,624 61,335 195,862 133,204 Special assessments 115,518 68,413 62,632 70,349 Miscellaneous 255,633 205,078 58,012 64,867 Total Revenues 7,251,282 8,804,079 9,301,201 9,530,933 Expenditures Current General government 1,263,916 1,242,028 1,282,487 1,285,064 Public safety 3,248,071 4,734,635 4,906,572 4,906,117 Streets 425,192 508,544 454,964 496,239 Culture and recreation 238,424 255,395 231,356 268,831 Community development - - - - Recycling 104,046 - 4,572 - Capital outlay 1,795,760 1,683,159 3,973,460 2,114,343 Debt service Principal 1,110,000 1,145,000 1,900,000 1,010,000 Interest and other charges 362,629 328,633 302,728 331,317 Bond issuance costs - - - - Total Expenditures 8,548,038 9,897,394 13,056,139 10,411,911 Deficiency of Revenues under expenditures (1,296,756) (1,093,315) (3,754,938) (880,978) Other Financing Sources (Uses) Transfers in 1,752,437 866,000 905,848 1,451,397 Transfers out (1,586,437) (700,000) (636,548) (1,131,188) Bond proceeds - - 4,070,177 - Premium on bonds issued - - - - Refunding bonds issued - - - - Sale of capital assets 20,503 30,110 22,662 17,610 Total Other Financing Sources (Uses)186,503 196,110 4,362,139 337,819 Net Change in Fund Balances (1,110,253)$ (897,205)$ 607,201$ (543,159)$ Debt Service as a Percentage of Noncapital Expenditures 31.20%20.10%16.50%24.20% Fiscal Year (1) The Water Revenue Bonds and Sewer Revenue Bonds debt service funds and the Water Connection, Sewer Connection, and Water System Improvements capital projects funds were reclassified from governmental to enterprise (business-type) in 2013. Activity prior to 2012 has not been restated for this change. DRAFT 136 2016 2017 2018 2019 2020 2021 5,057,941$ 5,258,546$ 5,448,238$ 5,709,173$ 6,043,234$ 6,691,522$ 715,281 613,218 954,278 742,042 502,714 781,642 496,497 1,025,044 1,616,583 966,874 1,439,511 1,048,012 2,973,534 3,165,196 3,211,749 3,647,122 3,578,117 3,941,998 133,354 101,824 124,060 299,661 72,428 244,444 97,843 105,079 122,659 259,332 173,308 (6,927) 8,537 2,226 22,935 22,783 35,881 35,759 143,976 66,122 171,219 73,649 141,544 52,371 9,626,963 10,337,255 11,671,721 11,720,636 11,986,737 12,788,821 1,362,293 1,474,265 1,433,076 1,271,893 1,732,325 1,348,363 5,073,430 5,298,939 5,628,086 5,446,200 5,599,888 5,857,388 480,765 486,138 595,740 773,965 1,089,733 811,636 281,340 304,333 421,996 480,870 570,346 636,267 - - - 141,722 111,781 59,265 - 1,590 - - - - 1,721,077 2,150,260 5,771,819 2,607,061 2,568,670 2,892,541 1,085,788 3,556,024 660,000 890,000 925,000 2,150,000 344,562 237,286 187,404 184,385 164,613 87,476 - - - - - 325,901 10,349,255 13,508,835 14,698,121 11,796,096 12,762,356 14,168,837 (722,292) (3,171,580) (3,026,400) (75,460) (775,619) (1,380,016) 1,565,385 1,262,405 1,486,307 1,678,274 570,000 1,195,797 (1,410,385) (1,107,405) (1,217,307) (1,517,613) (400,000) (983,297) - - - - - 15,350,000 94,956 - - - - 653,923 2,680,000 - - - - - 48,975 38,738 33,097 41,105 39,811 31,388 2,978,931 193,738 302,097 201,766 209,811 16,247,811 2,256,639$ (2,977,842)$ (2,724,303)$ 126,306$ (565,808)$ 14,867,795$ 15.80%16.40%33.70%8.60%10.92%19.31% Fiscal Year DRAFT 137 City of Orono, Minnesota Statistical Section (Unaudited) Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal Year Total Taxable Ended Residential Commercial Industrial Total Assessed Total Direct December 31, (1)Property Property Property Market Value Value Tax Rate 2012 2,319,999,400$ 54,284,700$ 7,771,200$ 2,382,055,300$ 26,790,406$ 16.283 1.12 % 2013 2,353,751,300 53,032,100 9,618,500 2,416,401,900 26,531,505 17.667 1.10 2014 2,367,078,691 52,385,700 11,937,300 2,431,401,691 27,566,309 17.815 1.13 2015 2,468,589,098 50,003,300 12,831,100 2,531,423,498 28,749,183 17.387 1.14 2016 2,664,593,042 51,885,300 14,602,600 2,731,080,942 28,351,935 17.352 1.04 2017 2,810,505,878 53,590,300 15,428,800 2,879,524,978 32,961,379 1.759 1.14 2018 2,932,517,796 49,881,300 20,720,700 3,003,119,796 34,422,178 16.555 1.15 2019 3,094,297,060 54,320,300 21,603,800 3,170,221,160 36,465,048 16.406 1.15 2020 3,335,498,959 62,889,100 19,996,200 3,418,384,259 39,482,429 16.512 1.16 2021 3,335,498,959 62,889,100 19,996,200 3,418,384,259 39,029,347 16.780 1.14 Source: Hennepin County Assessor. (1) Represents the year the taxes are payable, not the year the taxes are levied. Real Property Tax Capacity Actual Value Percentage of Value as a Assessed DRAFT 138 City of Orono, Minnesota Statistical Section (Unaudited) Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years Fiscal Special Year Districts 2012 13.634 %2.649 %16.283 %19.939 %48.231 %11.228 %95.681 % 2013 14.826 2.841 17.667 22.325 49.461 11.858 101.311 2014 14.951 2.864 17.815 22.802 49.959 12.367 102.943 2015 14.633 2.754 17.387 22.601 46.398 9.785 96.171 2016 14.685 2.640 17.325 23.166 45.356 9.520 95.367 2017 14.328 2.431 16.759 23.352 44.087 11.057 95.255 2018 14.391 2.164 16.555 24.024 42.808 10.667 94.054 2019 14.336 2.070 16.406 23.552 41.861 10.119 91.938 2020 14.557 1.955 16.512 23.109 41.084 9.712 90.417 2021 15.309 1.471 16.780 22.657 38.210 9.235 86.882 Source: Hennepin County Assessing Department Rates School Overlapping Direct & No. 278 County District City of Orono Hennepin Total Millage RateMillage Operating Debt Service Total Direct DRAFT 139 City of Orono, Minnesota Statistical Section (Unaudited) Principal Property Taxpayers Current and Nine Years Ago Net Net Tax Tax Taxpayer Capacity Rank Capacity Rank 233,075$ 1 0.60 %-$ - % Private Residence 176,500 2 0.45 207,813 1 0.71 170,988 3 0.44 128,338 2 0.44 Metro Storage 149,490 4 0.38 - - 138,425 5 0.35 109,551 3 0.38 127,663 6 0.33 - - 124,950 7 0.32 97,010 7 0.33 121,438 8 0.31 108,525 4 0.37 105,600 9 0.27 104,525 5 0.36 Orono Hsg & Rdvlpt 103,988 10 0.27 - - - - 104,213 6 0.36 Private Residence - - 91,888 8 0.32 Private Residence - - 86,838 9 0.30 - - 94,439 10 0.32 Total 1,452,117$ 3.72 %1,133,140$ 3.89 % Source: Hennepin County Assessor's Office Brackett Point Property LLC Tax Capacity Tax Capacity 2021 2012 Percent of Percent of Total Net Total Net Private Residence Private Residence Private Residence Private Residence WJM Properties LLC 1725 Bohns Point LLC Private Residence Private Residence DRAFT 140 City of Orono, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Total Tax Collection Collection Fiscal Levy for of Current of Prior Total Year Fiscal Year Year's Levy Years' Levy Collections 2012 4,702,558$ 4,632,847$ 98.52 %69,711$ 4,702,558$ 100.00 % 2013 4,701,750 4,677,698 99.49 24,052 4,701,750 100.00 2014 4,743,144 4,701,760 99.13 41,384 4,743,144 100.00 2015 4,772,000 4,748,327 99.50 23,673 4,772,000 100.00 2016 4,954,480 4,968,026 *100.27 (15,694) 4,952,332 99.96 2017 5,205,230 5,235,100 *100.57 (35,658) 5,199,442 99.89 2018 5,439,951 5,379,375 98.89 49,412 5,428,787 99.79 2019 5,816,338 5,771,646 99.23 33,333 5,804,979 99.80 2020 6,007,450 5,935,931 98.81 40,486 5,976,417 99.48 2021 6,610,682 6,556,718 99.18 - 6,556,718 99.18 Source: Hennepin County Treasurer - Auditor. * In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay their property taxes. Collected to Levy Percentage Percentage of Total of Levy Collections DRAFT 141 City of Orono, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years General General Total Fiscal Obligation (G.O.)Public Facility Capital Obligation (G.O.)Primary Per Year Bonds Bonds Leases Bonds Government Capita 2012 8,430,000$ 1,240,000$ 8,357$ -$ 9,678,357$ 2.08 %1,303 2013 7,470,000 1,055,000 5,682 - 8,530,682 1.46 1,125 2014 10,620,000 - 17,374 1,280,000 11,917,374 1.99 1,566 2015 9,610,000 - 11,812 1,195,000 10,816,812 2.14 1,389 2016 11,431,701 - 6,024 1,138,557 12,576,282 1.84 1,635 2017 7,660,000 - - 1,045,000 8,705,000 1.20 1,068 2018 7,000,000 - - 965,000 7,965,000 1.03 983 2019 6,110,000 - - 885,000 6,995,000 0.84 846 2020 5,185,000 - - 805,000 5,990,000 0.70 747 2021 18,385,000 - - 725,000 19,110,000 2.22 2,359 Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Schedule of Demographic and Economic Statistics for personal income and population data. Percentage of Personal Income Business-type Governmental Activities DRAFT 142 City of Orono, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Governmental Business-type Activities Activities Less General General Amounts Net Fiscal Obligation Obligation Restricted for Bonded Year Bonds Bonds Debt Service Debt Per Capita (2) 2012 8,430,000$ -$ 1,898,787$ 6,531,213$ 0.27 %879$ 2013 7,470,000 - 1,571,736 5,898,264 0.24 778 2014 10,620,000 - 1,189,565 9,430,435 0.39 1,239 2015 9,610,000 1,195,000 2,209,951 8,595,049 0.34 1,104 2016 11,431,701 1,138,557 7,550,955 5,019,303 0.18 653 2017 7,660,000 1,045,000 1,854,112 6,850,888 0.24 841 2018 7,000,000 965,000 2,080,923 5,884,077 0.20 746 2019 6,110,000 885,000 3,250,008 2,859,992 0.09 353 2020 5,185,000 805,000 2,908,430 2,276,570 0.07 275 2021 18,385,000 725,000 3,089,869 15,295,131 0.45 1,839 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. (2) Population data can be found in the Schedule of Demographic and Economic Statistics. Estimated Market Value of Taxable Property (1) Percentage of DRAFT 143 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 144 Estimated Share Total Debt of Overlapping Outstanding Sinking Funds Net Debt Debt Direct Debt: City of Orono 3,035,000$ 1,298,000$ 1,737,000$ 100.00 %1,737,000$ ISD No. 278 (Orono)59,855,000 2,852,672 57,002,328 52.62 29,994,625 ISD No. 276 (Minnetonka)115,620,000 2,159,977 113,460,023 0.28 317,688 ISD No. 277 (Westonka)32,605,000 880,599 31,724,401 26.45 8,391,104 ISD No. 284 (Wayzata)220,490,000 16,197,231 204,292,769 0.92 1,879,493 Hennepin County 1,053,595,000 16,561,484 1,037,033,516 1.91 19,807,340 Hennepin Suburban Park 52,890,000 7,347,459 45,542,541 2.72 1,238,757 Hennepin Regional RR Authority 90,580,000 1,247,470 89,332,530 1.91 1,706,251 Metropolitan Council 193,320,000 120,270,400 73,049,600 0.93 679,361 1,818,955,000 167,517,292 1,651,437,708 64,014,620 65,751,620$ (1) Note 1: Note: Source 1: Source 2: Overlapping Debt: Applicable Percentage Governmental Unit City of Orono, Minnesota Direct and Overlapping Governmental Activities Debt as of December 31, 2020 Estimated Statistical Section (Unaudited) Hennepin County Total Overlapping Debt Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and Assessment. Debt outstanding data provided by the county. Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. Excludes revenue and special assessment bonds. Total Direct and Overlapping Debt The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county’s taxable assessed value that is within the government’s boundaries and dividing it by the county’s total taxable assessed value.DRAFT 145 City of Orono, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 2012 2013 2014 2015 Debt Limit 71,461,659$ 72,492,057$ 72,942,051$ 75,942,705$ Total Net Debt Applicable to Limit 6,898,136 6,319,308 10,660,892 8,714,780 Legal Debt Margin 64,563,523$ 66,172,749$ 62,281,159$ 67,227,925$ Total Net Debt Applicable to the Limit as a Percent of Debt Limit 9.65%8.72%14.62%11.48% Fiscal Year Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of taxable property. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues, or tax increments. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. DRAFT 146 2016 2017 2018 2019 2020 2021 81,932,428$ 86,385,749$ 90,093,594$ 95,106,635$ 102,551,528$ 102,551,528$ 8,062,670 8,705,000 5,884,077 4,842,172 3,849,458 17,443,799 73,869,758$ 77,680,749$ 84,209,517$ 90,264,463$ 98,702,070$ 85,107,729$ 9.84%10.08%6.53%5.09%3.75%17.01% Taxable Market Value 3,418,384,259$ Debt Limit (3 Percent of Market Value)102,551,528$ Debt Applicable to Limit General obligation bonds 19,110,000 Less: amount available in debt service funds (1,666,201) Total Net Debt Applicable to Limit 17,443,799 Legal Debt Margin 85,107,729$ Fiscal Year Legal Debt Margin Calculation for Fiscal Year 2020DRAFT 147 City of Orono, Minnesota Statistical Section (Unaudited) Pledged Revenue Coverage Last Ten Fiscal Years Water Less Net Fiscal Charges Operating Available Year and other (2)Expense (1)Revenue Principal (5)Interest Total 2015 615,569$ 577,320$ 38,249$ 85,000$ 31,680$ 116,680$ 33.00 % 2016 706,460 624,253 82,207 75,000 74,044 149,044 55.00 2017 746,514 643,048 103,466 75,000 25,181 100,181 103.00 2018 714,159 818,330 (104,171) 80,000 21,480 101,480 (103.00) 2019 854,551 782,665 71,886 80,000 22,031 102,031 70.46 2020 1,254,730 883,550 371,180 80,000 20,431 100,431 3.70 2021 1,605,511 866,330 739,181 80,000 18,831 98,831 747.92 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Note: Information prior to 2015 is not available or not existant. Debt Service Water G.O. Revenue Bonds Coverage DRAFT 148 City of Orono, Minnesota Statistical Section (Unaudited) Demographic and Economic Statistics Last Ten Fiscal Years Education Per Capita Level in Years School Fiscal Population Personal Personal Median of Formal Enrollment Year (1)Income Income Age (2)Schooling (3) 2012 7,428 572,416,536$ 77,062$ 45 - 2,711 4.8 % 2013 7,584 584726400 77,100 46 - 2,760 4.8 2014 7,611 597,463,500 78,500 46 - 2,757 2.9 2015 7,785 506,281,905 65,033 46 - 2,808 2.8 2016 7,691 685,014,271 89,067 43 - 2,790 3.3 2017 8,147 724,455,244 89,923 47 - 2,807 2.6 2018 7,883 770,192,324 95,062 47 - 2,820 2.5 2019 8,102 837,374,772 101,279 47 - 2,850 2.5 2020 8,015 850,888,430 106,162 48 - 2,834 4.2 2021 8,315 850,888,430 106,162 48 - 2,850 2.3 Note: Information on education level was only available in 2010 census data. Data sources (1)Metropolitan Council Estimate in non census years. 2010 based on census data. 2017 based on U.S. Census estimate. (2)Hennepin County average/median for non-census years. 2020 based on census data. (3)Minnesota Department of Education, as reported by ISD No. 278 (Orono). (4)Minnesota Department of Economic Security; Hennepin County average for non-census years. 2012 based on census data. Rate (4) Unemployment DRAFT 149 THIS PAGE IS LEFT BLANK INTENTIONALLY DRAFT 150 City of Orono, Minnesota Statistical Section (Unaudited) Principal Employers Current Year and Nine Years Ago Employees Rank Employees Rank 351 1 19.50 %500 1 31.25 % 179 *2 9.94 125 3 7.81 163 *3 9.06 200 2 12.50 113 4 6.28 - - - 112 *5 6.22 80 5 5.00 100 6 5.56 100 4 6.25 75 7 4.17 60 6 3.75 65 8 3.61 43 8 2.69 Culver's 60 9 3.33 50 7 3.25 Trails of Orono 45 10 2.50 - - - - - - 30 9 1.88 Morries' Automotive - - - 23 10 1.44 Total 1,263 70.17 %1,211 75.82 % Source: City of Orono and State Department of Commerce and Employers *Total W-2's sent out, which includes part-time and seasonal employees. 2021 2011 Employment Employment Percent Percent of City of City ISD No. 278 (Orono) City of Orono Service 800 Otten Brothers Wayzata Country Club Woodhill Country Club Jem Technical Lunds Springhill Country Club DRAFT 151 City of Orono, Minnesota Statistical Section (Unaudited) Full-time Equivalent Employees by Function Last Ten Fiscal Years 2012 2013 2014 2015 General Government 7 7 7 8 Public Safety Police Officers 17 30 28 27 Civilians 3 4 4 4 Code Enforcement 6 6 6 6 Public Works 5 5 5 5 Parks (1)- - - - Water 2 2 2 2 Sewer 3 3 3 3 Storm Water 1 1 1 1 Golf 3 3 5 5 Total 44 59 59 59 Source: City budgets and personnel records. (1) Separated Parks department in 2018 due to hiring Park Supervisor at the end of 2017 Function Note: This table shows 61 employees while the Prinicipal Employers schedule shows 54 due to their part time employees included within the table above. DRAFT 152 2016 2017 2018 2019 2020 2021 8 8 8 8 7 7 27 27 30 30 30 29 4 4 4 4 4 4 5 4 5 5 5 4 5 5 5 5 5 5 - - 1 1 1 2 2 2 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 5 5 3 3 3 1 58 57 61 61 60 59 DRAFT 153 City of Orono, Minnesota Statistical Section (Unaudited) Operating Indicators by Function Last Ten Fiscal Years 2012 2013 2014 2015 Public Safety Police Initial reports 6,688 12,128 10,990 10,056 Citations 1,982 3,228 2,437 1,495 Building/Zoning Building permits issued 441 449 485 470 Land use applications 48 24 56 63 Water New connections 1,003 1,036 1,036 1,023 Radio read meters - start 2004 927 1,001 1,036 1,010 Annual water pumped (thousands of gallons)125,005 108,486 96,006 95,701 Waste Water New connections 2,231 2,225 2,218 2,238 Annual sewer flow (thousands of gallons) (2)177,360 186,310 190,710 201,000 Storm Water Sweeping (centerline Miles) (1)46 46 46 46 Drainage projects 1 1 1 1 Golf Rounds played 10,067 6,990 10,890 14,334 Sources: City department records. (2) 2017 data received from Metropolitan Council Function (1) Historical data is based on the miles of roads that was included in each sweeping. 2017 data is bases on the miles of road that was swept in total. DRAFT 154 2016 2017 2018 2019 2020 2021 9,320 6,462 5,875 4,997 4,496 4,582 1,929 1,509 1,675 1,331 907 1,064 466 518 535 660 442 460 59 110 81 95 77 62 1,036 1,041 1,087 1,109 1,090 1,126 1,024 1,029 1,072 1,096 1,071 1,165 96,936 108,627 108,923 106,490 131,048 161,542 2,243 2,256 2,287 2,352 2,298 2,485 211,900 173,840 195,420 219,740 234,390 111,024 46 92 46 46 48 48 3 3 7 6 6 5 11,976 11,387 7,007 7,289 16,000 13,964 DRAFT 155 City of Orono, Minnesota Statistical Section (Unaudited) Capital Asset Statistics by Function Last Ten Fiscal Years 2012 2013 2014 2015 Public Safety Police Stations 1 1 1 1 Patrol units 11 14 14 14 Fire stations 1 1 1 1 Public Works Highways and streets Streets (miles) 46 46 46 46 Street lights (1)135 135 135 135 Culture and Recreation Parks acreage (2)228 228 228 228 Parks 22 22 22 22 Beaches 4 4 4 4 Utilities Water Miles of water main 18 18 18 18 Wells 3 3 3 3 Water plants 2 2 2 2 Maximum daily capacity (thousands of gallons)2,160 2,160 2,160 2,160 Sewer Miles of sanitary sewer 47 47 47 47 Pumping stations 46 46 46 46 Golf Clubhouse 1 1 1 1 Holes 9 9 9 9 Source: City department records. (1) Historical streetlights was adjusted to reflect updated inforamtion (2) Historical park acerage was adjusted to reflect updated information Note: No capital asset indicators are avaliable for the general government functions Function DRAFT 156 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 14 14 14 14 14 18 1 1 1 1 1 1 46 46 46 46 48 48 135 135 135 148 151 151 228 228 228 228 228 228 22 22 22 22 22 22 4 4 4 4 4 4 18 23 23 23 23 23 4 4 4 4 4 4 2 2 2 2 2 2 3,800 3,800 3,800 3,800 3,800 3,800 47 61 61 62 63 63 46 46 45 45 45 45 1 1 1 1 1 1 9 9 9 9 9 9 DRAFT 157 Management Communication City of Orono Orono, Minnesota For the year ended December 31, 2021 DRAFT NEED DATE Management, Honorable Mayor and City Council City of Orono, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota, (the City) for the year ended December 31, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 26, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circu mstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. As described below, we identified a deficiency in internal control that we consider to be a material weakness, as finding 2021-001. DRAFT 2 2021-001 Material Audit Adjustments Condition: During our audit, material adjustments were needed to correct the year-end balances for an interfund loan not on the City’s books and the 2021A G.O bond not being recorded on the books. Criteria: Such adjustments were needed to correct year end balances. Amounts reported in the City’s accounting system need to agree to the underlying supporting documentation. Cause: City staff did not record an interfund loan which took place in a prior year. City staff had not previously recorded the 2021A bond issuance that took place on December 30, 2021 Effect: This indicates that misstatements may occur and not be detected by the City’s system of internal control, which could lead to a material misstatement. Recommendation: We recommend management review the related journal entries, obtain an understanding of why the entries were necessary and modify current procedure to ensure that future corrections are not needed. Management Response: Management agrees with the finding and understands the reason the adjustments were needed. Procedures over year- end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City did not change accounting policies during the year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements include depreciation on capital assets, allocation of payroll and compensated absences, the liability for other postemployment benefits, value of land held for resale, and the assets and liabilities for the City’s pensions. • Management’s estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are derived from each employee’s estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable. • Management’s estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. DRAFT 3 •Management’s estimate of its pension liabilities and assets are based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. o The allocation of the pension liability related to Minnesota Public Employee Retirement Association (PERA) is based on the City’s proportionate share of employer contributions to the PERA cost-sharing multiple employer Coordinated and Police and Fire pension plans. We evaluated the key factors and assumptions used to develop these accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No misstatements were noted. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated NEED DATE. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management’s Discussion and Analysis, the Schedules of Employer’s Share of the Net Pension Liability, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios, the Schedules of Employer’s Contributions and the Schedule of Funding Progress for Other Post-Employment Benefits Plan), which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. DRAFT 4 We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is app ropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discuss ions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. DRAFT 5 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: (1) GASB Statement No. 87 - Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should no t restate the assets underlying their existing sales-type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision - usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. DRAFT 6 Future Accounting Standard Changes (Continued) GASB Statement No. 91 - Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrange ments associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment. This Statement also addresses arrangements - often characterized as leases - that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities. Payments from third-party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about the ir conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporti ng the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations DRAFT 7 Future Accounting Standard Changes (Continued) GASB Statement No. 92 - Omnibus 2020 Summary The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: •The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports •Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan •The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits •The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements •Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition •Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers •Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature •Terminology used to refer to derivative instruments. Effective Date and Transition The requirements of this Statement are effective as follows: •The requirements related to the effective date of Statement 87 and Implementation Guide 2019 -3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. •The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2020. •The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2020. •The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2020. Earlier application is encouraged and is permitted by topic. DRAFT 8 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 93 - Replacement of Interbank Offered Rates Summary The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement achieves that objective by: • Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment • Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate • Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable • Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap • Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap • Clarifying the definition of reference rate, as it is used in Statement 53, as amended • Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend Effective Date and Transition The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are eff ective for reporting periods beginning after June 15, 2020. Earlier application is encouraged. The exceptions to the existing provisions for hedge accounting termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting ramifications of replacing IBORs with other reference rates. The reliability and relevance of reported information will be maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or replace agreements to replace an IBOR. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. DRAFT 9 Future Accounting Standard Changes (Continued) GASB Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment Arrangements Summary The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide p ublic services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual inte rest in the service utility of the underlying PPP asset at the end of the arrangement. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a governm ent compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated). How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPPs. DRAFT 10 Future Accounting Standard Changes (Continued) GASB Statement No. 96 - Subscription-Based Information Technology Arrangements Summary This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. Under this Statement, a government generally should recognize a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability. A government should recogniz e the subscription liability at the commencement of the subscription term, - which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be m ade during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily d eterminable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods. This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This Statement requires a government to disclose descriptive information about its SBITAs other than short -term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. Assets and liabilities resulting from SBITAs should be recognized and measured using the facts and circumstances that existed at the beginning of the fiscal year in which this Statement is implemented. Governments are permitted, but are not required, to include in the measurement of the subscription asset capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage incurred prior to the implementation of this Statement. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. DRAFT 11 Future Accounting Standard Changes (Continued) GASB Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 Summary The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) e nhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement requires that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defi ned contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. This Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financ ial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans should be measured as of the end of the plan’s reporting period in all circumstances. Effective Date and Transition The requirements of this Statement that (1) exempt primary governments that perform the duties that a governing board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans and (2) limit the applica bility of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 7 4, respectively, are effective immediately. The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining wheth er a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this Statement. DRAFT 12 Future Accounting Standard Changes (Continued) The Board considered the effective dates for the requirements of this Statement in light of the COVID-19 pandemic and in concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will result in more consistent financial reporting of defined contribu tion pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans. GASB Statement No. 98 – The Annual Comprehensive Financial Report Summary This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. This Statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This Statemen t’s introduction of the new term is founded on a commitment to promoting inclusiveness. Effective Date and Transition The requirements of this Statement are effective for fiscal years ending after December 15, 2021. Earlier application is encouraged. (1)Note. From GASB Pronouncements Summaries. Copyright 2021 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. * * * * Restriction on Use This purpose of this communication is solely for the information and use of the City Council and management of the City and is not intended to be, and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us a t your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Abdo Minneapolis, Minnesota NEED DATE DRAFT 13 Other Required Reports City of Orono Orono, Minnesota For the year ended December 31, 2021 DRAFT City of Orono, Minnesota Other Required Reports Table of Contents For the Year Ended December 31, 2021 Page No. Other Required Reports Independent Auditor’s Report on Minnesota Legal Compliance 3 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 Schedule of Finding and Response 6 DRAFT 2 INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Orono, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City) as of and for the year ended December 31, 2021, and the related notes to the financial statements, and have issued our report thereon dated NEED DATE. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. Abdo Minneapolis, Minnesota NEED DATE DRAFT 3 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Orono, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City), as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated NEED DATE. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying Schedule of Finding and Response as item 2021-001 that we consider to be material weaknesses. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contract s, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. DRAFT 4 Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying Schedule of Finding and Response. The City’s response were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Abdo Minneapolis, Minnesota NEED DATE DRAFT 5 City of Orono, Minnesota Schedule of Finding and Response For the Year Ended December, 31 2021 Finding Description 2021-001 Material Audit Adjustments Condition: During our audit, material adjustments were needed to correct the year-end balances for an interfund loan not on the City’s books and the 2021A G.O bond not being recorded on the books. Criteria: Such adjustments were needed to correct year end balances. Amounts reported in the City’s accounting system need to agree to the underlying supporting documentation. Cause: City staff did not record an interfund loan which took place in a prior year. City staff had not previously recorded the 2021A bond issuance that took place on December 30, 2021 Effect: This indicates that misstatements may occur and not be detected by the City’s system of internal control, which could lead to a material misstatement. Recommendation: We recommend management review the related journal entries, obtain an understanding of why the entries were necessary and modify current procedure to ensure that future corrections are not needed. Management Response: Management agrees with the finding and understands the reason the adjustments were needed. Procedures over year- end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future. DRAFT 6 AGENDA ITEM Prepared By: Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this action item is to consider procurement of a replacement vehicle for the Fire Department. 2. Background. The Orono City Council authorized purchase of a replacement vehicle for CMD2 in September of 2021. Automotive supply chain issues has delayed purchase of the vehicle and made purchase thru the normal state contract impossible at this time. LLFD has been able to locate an appropriate vehicle in Maryland. The vehicle exceeds the previous approved amount so a new council approval is required. In addition the LLFD has identified issues with CMD1 and would like the Orono City council to consider replacement of it simultaneously with CMD2 from the same source. At the July 25, 2022 council meeting the council approved purchase of the two Command vehicles contingent upon them being solely owned by Orono and the City of Long Lake acknowledging the same. Following the approval staff sent a letter to Long Lake to seek acknowledgment of the special conditions of the purchase (Exhibit C). At their August 3rd Meeting the Long Lake City Council approved the purchase of the two vehicles under the terms of the 2002 Fire Contract. They did not acknowledge the Orono Sole ownership condition (Exhibit D). 3. Equipment Description. The Command Vehicles are used by the Fire chief and duty officer. 4. Cost. The fire department received one proposal from Criswell Fleet Sales. Item Cost CIP Amount CMD 2 -Chevy Tahoe SUV PPV $ 68,853.59 $60,000 (2021) CMD 1 -Chevy Tahoe SUV PPV $ 68,853.59 $65,000 (2027) TOTAL $137,707.18 5. Funding. Funding for the project will come from a combination of the Equipment Outlay Fund for Fire. If purchased under the 2002 fire agreement the Orono cost will be ~$117,050.95. CIP Amount Amount proposed Est. 2022 End of Year Fund Balance $ 125,000 $137,707 $ 146,642* *In addition to these proposed procurements there is another proposal for Fire Utility vehicle in the amount of $194,646 being considered by LLFD for purchase in 2022 6. Staff Recommendation. My recommendation remains that any purchases in support of the LLFD be solely funded by the city of Orono and the vehicle therefore become entirely owned by the City of Orono. The vehicle title to be in Orono’s name and that the vehicle is on loan to the LLFD. COUNCIL ACTION REQUESTED Direction from Council on how to proceed with respect to Fire department command vehicle purchase. Possible Options: A. Approve Purchase in accordance with 2002 fire contract. B. Reiterate previous approval to purchase with City of Orono 100% ownership. C. Rescind Purchase Approval Exhibits A. Long Lake Fire justification documents B. Long Lake Fire Department CIP C. Letter to Long Lake D. Letter from Long Lake Item No.: 13 Date: August 8, 2022 Item Description: Fire Department Equipment Procurement – CMD 1 and CMD 2 (22-047) Presenter: Adam T. Edwards City Administrator/City Engineer Agenda Section: Fire Department Exhibit A. Exhibit B. Long Lake City Administrator July 26, 2022 City of Long Lake 450 Virginia Avenue, PO Box 606 Long Lake, MN 55356. RE: Purchase of Command Vehicles for Long Lake Fire Department Dear Scott, The City Council approved the purchase the two fire trucks at the July 25th , 2022 Council meeting. The authority to purchase was contingent on several conditions. As you know, Orono currently owns several pieces of fire equipment that are being utilized by Long Lake. The City would like to continue that arrangement and the purchase of the two new fire trucks is contingent on: 1) Orono owning 100% of the fire trucks 2) The trucks be titled with the City of Orono 3) The trucks will be loaned to Long Lake in the same fashion as the other equipment owned by Orono 4) The fire trucks are not subject to repurchase by Long Lake pursuant to the agreement dated October 15th, 2002 like the other pieces of equipment exclusively owned by Orono. Upon receiving confirmation of these terms the City of Orono will order the trucks. Sincerely, Adam Edwards City Administrator City of Orono